Tag: leave entitlements

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Single Touch Payroll Phase 2

Posted on | by Allan Hall

What every small business needs to know

Single Touch Payroll (STP) Phase 2 means every business that employs staff will be required to get on board with the expanded program.

STP Phase 2 requires additional information to be reported to the ATO, enabling other government agencies to leverage the STP infrastructure to receive information and support the administration of the social security system.

Single Touch Payroll Phase 2 in a nutshell

With STP Phase 2 reporting live from 1 January 2022, there’s expanded capturing and sharing of payroll and employee data as compared to the original rollout of Phase 1.

This extended capturing by the ATO is shared more widely with relevant government bodies – such as social services – and fills certain gaps in payroll information sharing that wasn’t previously being transmitted. This new data remit remains an automated process, handled through STP-compliant payroll software such as cloud accounting apps and payroll systems.

What the new is data being shared?

The ATO is looking to patch knowledge gaps in the payroll submission process to support social security purposes and get a better understanding of employee payment details.

So, in addition to the payroll and employee information you’re already sharing through STP Phase 1 (salaries, PAYG, superannuation), Phase 2 involves capturing the following pay items, employee records and new fields:

  • employment basis
  • paid leave
  • allowances
  • overtime
  • cessation details and termination reasons
  • child support deductions
  • salary sacrifice
  • lump sum payments
  • country codes

Under STP phase 2 reporting employers are also required to separately itemise the components which make up the gross earnings amount by reporting all allowances separately, not just expense allowances that may have been deductible on an employee’s individual income tax return.

Digital Service Providers (DSPs)

STP Phase 2 requires employers to fill out employees’ payroll data correctly in your chosen software solution. Be sure to use a DSP that can roll out compliance updates to their software.

Updates to STP will be made by DSPs on users’ behalf and they are working with the ATO to ensure timely and competent compliance and delivery. Employers are already filling out this payroll information, so there are no new fields to capture on your end. In this sense and the automated nature of STP, employers are not required to do anything further than what is already being done under Phase 1.

What it will do is decrease the compliance burden upon businesses in terms of reporting. For example, under Phase 2 employers are no longer required to submit TFN declaration forms.

What will not be changing

The rollout of STP Phase 2 following does not change:

  • the way Single Touch Payroll is reported
  • Single Touch Payroll reporting dates (on or before payday)
  • the types of employee payments required for Single Touch Payroll reporting
  • employers’ current tax and super obligations
  • end of year finalisation requirements and submission responsibilities

The next stage of the Single Touch Payroll (STP) journey is underway

STP Phase 2 will see businesses build on their existing payroll reporting to share more information each pay run.

Most employers are now reporting through STP. You will need to start reporting if you have not yet transitioned, unless you have an exemption or a deferral.

What do business owners need to do?

If you’re currently STP compliant with payroll software that’s enabled, you should be running your payroll as usual. If you’re a Xero or MYOB user, your DSP will confirm when your solution is ready for STP Phase 2 reporting.

If you have any queries or concerns over your payroll solution or if you need reassurance, please consult your Allan Hall bookkeeper or accountant.

CONTACT ALLAN HALL

Related reading

Expansion of STP (Phase 2)
family domestic violence

Family Domestic Violence leave entitlements

Posted on | by Allan Hall

Provisional decision by the Fair Work Commission to implement 10 days of paid family and domestic violence leave

Key points

  • It is anticipated that full-time and part-time award covered employees will soon be eligible to access 10 days of paid family and domestic violence leave per year.
  • The date this entitlement will come into effect has not yet been finalised.
  • All employees, including casuals, can continue to access five days of unpaid FDV leave per year in the meantime, under the National Employment Standards.

The Fair Work Commission has issued a provisional decision to provide 2.3 million full-time and part-time employees covered by modern awards with an entitlement to 10 days of paid family and domestic violence leave annually.

Under the current National Employment Standards, all workers (including casuals) are entitled to access five days of unpaid family and domestic violence leave per year.

However, on 17 May 2022 a provisional decision was made by the Fair Work Commission to provide full-time and part-time employees covered by a modern award with access to 10 days of paid family and domestic violence leave each year. The leave will accrue annually but will not exceed 10 days.

Please note, this decision is not yet finalised and the Commission has asked for input from interested parties before issuing a final decision.

Who is eligible to apply for family and domestic violence leave?

An employee who is a victim of family and domestic violence may access this leave to respond to the impact of family and domestic violence, where it is impractical to do so outside of regular working hours.

Reasons an employee may take family and domestic violence leave include:

  • to attend police interviews or court hearings
  • to plan for their safety or the safety of a close family member
  • to attend appointments with counselling, medical or legal providers

Applying payment to family and domestic violence leave will help individuals to:

  • sustain their economic security
  • access appropriate services
  • safely remove themselves from a life of violence.

Employer Concerns

There have been some concerns raised by business groups about the increased costs associated with the new paid entitlement. However, the Fair Work Commission anticipates that the take-up of the paid family and domestic violence leave entitlement would likely be low. In addition, the current estimated spend associated with family and domestic violence leave due to increased absenteeism and lost productivity sits at $2 billion annually, which is far costlier for businesses.

Effective Date

There is no set effective date as the decision isn’t yet finalised. Given that there have been some concerns raised by business groups, the Fair Work Commission will liaise with relevant parties, giving them the opportunity to raise any objections, before the details are finalised and entitlements come into effect.

Casual Employees

At this stage, the Fair Work Commission has advised that casual employees have been excluded from the new paid family and domestic violence leave entitlement.

Casual employees will continue to be eligible to access up to five days of unpaid family and domestic violence leave each year under the National Employment Standards.

Action for employers

Although the decision is not yet finalised, it is important for employers to prepare by:

  • keeping an eye out for developments in this area over the coming months. Once the decision is finalised, you may need to speak with your bookkeeper or payroll provider to ensure you have a family and domestic violence leave category available in your payroll software.
  • reviewing or developing a workplace policy which provides guidance for employees experiencing family and domestic violence, in respect to accessing leave or additional support.

If you would like further guidance or assistance with reviewing or developing policies and procedures regarding family and domestic violence leave, or approaching difficult employee conversations, please do not hesitate to contact the team at Allan Hall HR.

Looking Ahead

Some unions and business advocates are calling on the federal government to apply 10 days of paid family and domestic violence leave to all employees covered by the National Employment Standards (including casuals and contractors). They are advocating for family and domestic violence leave to be inserted into the National Action Plan to end violence to women and children. Given this activity, we will likely see more announcements coming soon in respect to these leave entitlements.

Contact us

Our experienced HR Consultants are available to support you with any employee-related questions. Please get in touch with us today on 1300 675 393 or at [email protected].

Compliance cogs

COVID-19 Leave, Testing & Isolation Requirements

Posted on | by Allan Hall

COVID-19 Guide to Leave, Testing and Isolation Requirements

Navigating changes in employment legislation related to Covid-19 has been difficult for many business owners across Australia.

As COVID-19 hospitalisation/ ICU numbers decrease and vaccination numbers increase, the NSW Government is committed to easing restrictions, including no longer needing to wear masks in offices from Friday 25 February 2022. Although testing and isolation requirements have been in place across each State for some time now, with many employees returning to work in communal office environments in NSW it will remain important for employers to have access to up-to-date Covid-19 related processes and leave options.

The below information provides a guide regarding leave, testing and isolation requirements to support you in managing your employees. For assistance in resolving employee-related queries or situations which are not covered below, please get in touch with our HR Consultants for support on 1300 675 393 or at [email protected].

Illness

Employees should stay home if they have cold symptoms, such as coughing/fever/sore throat/shortness of breath/loss of taste or smell or other symptoms of COVID‑19.

If employees develop symptoms while at work, they should be directed to:

  1. separate themselves from other employees;
  2. notify their manager; and
  3. make arrangements to go home immediately.

If employees are unfit for work due to symptoms, they can access their Personal (Sick/Carer’s) Leave. If the symptoms are mild, employees may request to continue working from home and this may or may not be suitable depending on their position and specific situation.

Close contact of COVID-19 positive

If your employee is notified that they are a close contact of a person with COVID-19, advise them to separate themself from other employees, notify their manager and make arrangements to go home immediately. You can advise them to follow the Testing and Isolation Rules that apply in your state as per the table below.

Confirmed Case of COVID-19

If an employee tests positive for COVID-19 they should self-isolate immediately and notify their manager. You can advise them to follow the Testing and Isolation Rules that apply in your state as per the table below.

Employees should follow all medical advice to recover from their infection as soon as possible. Employers must take the necessary steps to determine possible exposure to COVID-19 by colleagues in the workplace and undertake appropriate sanitisation and quarantine if necessary. Employees may return to the office only in accordance with advice from the relevant health authorities in each State or Territory.

If an employee has contracted the virus (or has caring responsibilities for someone who has contracted the virus) and has consequently fallen ill, they will be entitled to Personal (Sick/Carer’s) Leave. An employer’s standard Notice and Evidence requirements will apply.

Quarantining or Self-Isolating

Employees may be required to quarantine or self-isolate, and consequently not be able to work, for a number of different reasons, including but not limited to:

  • contracting the COVID-19 virus;
  • an enforceable government direction;
  • a government-imposed travel restriction; or
  • a lawful and reasonable direction made by the employer to get tested which has led to a quarantine/self-isolation period.

Payment during Self-Isolation Period:

  • If an employee is unwell and unfit to work (or caring for a family or household member who is unwell) during the quarantine/self-isolation period they will be eligible for paid personal (sick/carer’s) leave (full-time/part-time employee) or unpaid personal (sick/carer’s) leave (casual employee)
  • If an employee is fit to work and has the capacity to continue to work during their quarantine or self-isolation period (which will be dependent on their role and eligibility to work from home), they will continue to be paid for the work they are doing.
  • If an employee is fit and able to work, however cannot continue to safely perform work whilst quarantining at home, they may have other paid or unpaid leave options or other flexible work arrangements available to them, including:
    • access to untaken paid Annual Leave entitlements
    • access to paid Long Service Leave entitlements (as applicable)
    • access to Unpaid Pandemic Leave for up to 2 weeks (this entitlement is only available to certain award covered employees – see below for further information)
    • access to Leave Without Pay
    • access to Pandemic Leave Disaster Payment through the Government for eligible employees (see below for further information)
    • other flexible work arrangements, such as an agreement to work to make up time upon conclusion of the isolation period

Unpaid Pandemic Leave – Award covered employees

Most Awards have been temporarily amended to give employees access to Unpaid Pandemic Leave. Two weeks of unpaid pandemic leave is available to all employees (including casuals). The employee will not receive payment, however, any time taken under this leave type will count as service and the employee will continue to accrue paid leave entitlements as if they were working.

Note: Unpaid Pandemic Leave does not apply to non-award covered employees.

Pandemic Leave Disaster Payment:

If any employee cannot work and earn an income, has no sick leave entitlements and has been directed to self-isolate or quarantine or needs to care for someone who needs to self-isolate or quarantine they may be eligible for the government funded Pandemic Leave Disaster Payment. There are eligibility criteria for the lump sum payment. Further details can be found here: https://www.servicesaustralia.gov.au/pandemic-leave-disaster-payment

State and Territory Testing and Isolation Rules

CONTACT US

Our experienced HR Consultants are available to support you with any employee-related questions. Please get in touch with us today on 1300 675 393 or at [email protected].

Casual Employees or Part time

COVID-19 impact on employees and employers

Posted on | by Allan Hall

Key Employment Options for the Latest NSW COVID-19 Restriction Period

Given the ongoing nature of this latest COVID 19 outbreak, the government has imposed further restrictions from 18 July 2021 which will impact businesses in the Greater Sydney area, including the Central Coast, Blue Mountains, Wollongong and Shellharbour. 

For a detailed rundown of how the recent COVID-19 restrictions impact employees and employers, including whether your employees are allowed to come to work and which businesses are allowed to remain open, please click here.

What are your options as an employer during this lockdown period?

There may be workplace options available such as:

  • Allowing employees to continue to work from home
  • Standing down employees unable to work with no pay
  • Changing rosters and hours of work
  • Changing employees’ duties

Allowing employees to continue to work from home

This is the ideal option if your business can successfully continue with remote working. Employers must allow an employee to work from home if the employee is reasonably able to do so. Businesses that do not allow employees that can reasonably work from home to do so face a fine of up to $10,000.

Stand downs

Under the Fair Work Act 2009, employers have the option of standing down employees without pay during a sudden workplace closure that is outside the employer’s control.  This is allowed when:

  1. the employee is not able to be usefully employed;
  2. there is a stoppage of work; and
  3. the stoppage must have been caused by reasons that the employer cannot reasonably be held responsible for.

If employees are unable to attend work due to an enforceable government direction (eg closure of construction or retail), the employer doesn’t have to pay the employee. Please note however, that an employer and employee can agree on the employee taking paid leave during the stand down period (e.g. annual leave/long service leave).

Changing rosters and hours of work or changing employees’ duties

These options can only be done by agreement between employer/employee and/or with appropriate notice according to the relevant award/agreement.

What can employees do?

Employees may be eligible for government assistance during a stand down or when they are unable to attend work due to an enforceable government direction.

Employees who are stood down may be able to access paid and unpaid leave entitlements.  However, it is important to note that this can affect employer and/or employee eligibility for government support and assistance.

Leave and support options

Unpaid Pandemic Leave

Employees required to self-isolate by government or medical authorities’ may be able to access up to 2 weeks of unpaid Pandemic leave. (Evidence may be required).

Annual Leave at half pay

Award covered employees can take annual leave at half pay for twice the length of time if their employer agrees.

Long Service Leave

An employer and a worker can agree to taking long service leave in smaller blocks, such as one or two days a week.

COVID-19 Disaster payment

The Federal Government COVID-19 Disaster Payment is a payment which employees can access to help when lockdown lasts for more than 7 days. Employees cannot get this payment for the first 7 days of lockdown. For more details about this payment, see here.

Pandemic Leave Disaster Payment

This is a lump sum payment to help during each 14 day period if an employee needs to self-isolate, quarantine or care for someone and cannot earn an income. There are eligibility criteria for the $1500 lump sum payment. For full details that apply to your state, click here.

Mental Health support

If you or your staff are experiencing any issues in coping with the impact of these lockdowns, there are a number of highly reputable support lines available, including:

Beyond Blue1800 51 23 48
Lifeline Australia13 11 14

More information?

Navigating the employment rules and support that relate to these latest restrictions is highly complex. Our team at Allan Hall HR are working hard to understand this fast-changing landscape and can help you to optimise the best solution for your industry and business. Please contact us directly at [email protected] or call 1300 675 393 if you wish to discuss your unique situation.  

navigating your way through redundancy

Navigating your way through a redundancy

Posted on | by Allan Hall

The ABS announced a record 932,000 jobs lost between the March and June 2020 quarters in the wake of COVID-19

While the Government extended temporary economic assistance for most businesses until March 2021, it has gradually been phased back which may result in many businesses downsizing, winding up or becoming bankrupt.

This means it’s possible that more jobs may be lost in the coming months.

If you are facing a possible redundancy at work due to the aftermath of COVID-19, or a company restructure, this is considered a significant life event that may impact your career, family, mental health and financial wellbeing. For those who are ready to retire, termination payments are likely to be a welcome windfall, but for those who don’t have retirement on the near horizon, you may find redundancy stressful, as it tends to happen during an economic downturn when it may be harder to find a new job.

The immediate issue to consider is whether you have enough money to tide things over until the next job comes along. If you are working with a Financial Adviser, then they will have a good idea of what your current financial position looks like, and how long you can manage without a job. They can also advise on different options to consider when it comes to a redundancy payout.

Your Financial Adviser can discuss:

  • How will redundancy payments be taxed?
  • What other employee entitlements will be lost?
  • Will lump sum payments impact on entitlements to social security and family assistance?
  • How will payments be used?

This is a great opportunity to make a real difference to your situation during a challenging time, and, if you are the employer, you may be able to support your employees to achieve a better outcome.

Genuine redundancy payment (GRP)

Payments on termination due to redundancy attract more generous tax concessions than if the employee resigns. If you are offered and accept a redundancy, it is worth knowing about the tax concessions and the conditions that must be met to be eligible.

A GRP must satisfy the following conditions:

  • The employee is dismissed because the employee’s position/role no longer exists
  • There is no arrangement between the employer (or another entity such as a company associated with the employer) and employee to rehire the employee after dismissal
  • Where the relationship between the employer and employee is non-arm’s length, the payment cannot be greater than the amount that would be reasonably expected if the relationship was at arm’s length
  • The dismissal occurs at the earlier of the following:
    • before the employee attains Age Pension age, or
    • before the employee attains the age, or completes a period of employment, when employment would have terminated.

If these conditions are not met, the employee is ineligible for the tax concessions that apply to GRPs. For example, where redundancy occurs on or after Age Pension age, the employee is not eligible for a tax-free GRP.

Payments on termination

Payments that may be received by an employee who is made redundant include:

  • salary and wages, overtime, bonuses and allowances
  • unused annual leave and long service leave
  • severance payments
  • a gratuity or ‘golden handshake’
  • genuine redundancy or early retirement scheme payments
  • non-genuine redundancy payments (eg redundancy occurs after employee reaches Age Pension age)
  • payments in lieu of notice
  • unused sick leave
  • unused rostered days off.

Taxation of payments

Payments on termination are categorised to determine how they are taxed. If you are offered a redundancy, you can plan ahead by asking your employer for an estimate of the payments you will receive, including withholding tax amounts. Your employer can provide you with an income statement at termination or you can obtain this from the Australian Taxation Office (ATO).

Payments eligible for concessional tax treatment attract tax offsets so that the tax paid does not exceed the concessional tax rate. Tax withheld by your employer reduces the final tax payable and if too much tax was withheld the excess is refunded to you.

Your Financial Adviser can help you identify and work out:

  • Payments for earned income
  • Tax on unused annual or long service leave
  • non-excluded employment termination payment (ETP), the tax-free genuine redundancy payment (GRP) and the excluded ETP.

Other considerations

As well as working out any payments, your Financial Adviser can discuss other financial and personal considerations, including:

  • How ongoing expenses can be met and for how long
  • Whether you intend to retire and if not, how long it may take to find another job
  • Other financial resources available to you
  • Eligibility for social security payments and/or Family Tax Benefits
  • Whether your employer has the flexibility to ‘time’ the redundancy and termination payments to assist with a better tax outcome
  • Whether deferring taxable income (for example deferring the sale of investments with capital gains implications) will have a favourable outcome
  • Your capacity to make personal deductible super contributions
  • What you would like to do if you do decide to retire, and what your retirement lifestyle will look like given your financial situation
  • If you decide to return to the workforce, whether your next job can pay a similar salary or if you take a pay cut in the current economic environment.

Redundancy may be beneficial if you’re ready to retire but stressful if you need to find a new job in a challenging economic environment. Some employers may be able to offer flexible payment arrangements on termination to facilitate a better tax outcome.

A Financial Adviser will discuss both the impact of redundancy on your overall financial situation and how to achieve a favourable payment outcome.

CONTACT US

General Advice Warning

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Mark O’Connell, Robin Bell and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323.

Happy friends enjoying on terrace. Smiling man and women are celebrating together during sunset. They are wearing casuals in party

How to avoid HR Issues during the Festive Season

Posted on | by Allan Hall

A different kind of Christmas Party during COVID!

Each year we like to send out a reminder to employers of your obligations when it comes to those end of year celebrations.

CLICK HERE to read ‘How to Avoid Christmas Party Incidents!’

This information certainly still applies, in fact this year you have additional responsibilities, including making sure that your party is held in a COVID safe manner.

What does this mean? Essentially, you need to continue to abide by the latest COVID safe advice from the NSW Government. Updated information can be found HERE.

If you have a large workforce and are planning a gathering, you might have to consider breaking your team up into smaller groups to satisfy social distancing requirements.

Or get creative and host a virtual gathering with some added flare, such as a guided Christmas cooking class with all ingredients delivered, virtual wine tasting or traditional trivia. You may even consider ways in which you can take your event outdoors where more people are allowed to gather.

We have all had to adapt to new ways of thinking this year. Including those ever important social events!  

Annual Leave Requests

With the Christmas–New Year period fast approaching, you may notice an increased number of annual leave requests waiting for your approval. For those businesses that shut down over this period, approving annual leave is usually a joyous task. However, for smaller businesses continuing to trade during this period, it can be somewhat of a difficult juggling act to ensure you have enough employees on board to meet your customers’ needs while also ensuring employees receive a well-deserved break.

When reviewing annual leave applications, it is important to remember that you cannot unreasonably refuse to authorise an employee’s request to take annual leave. If you need assistance with understanding the rules surrounding ‘reasonableness,’ please do not hesitate to make contact with our HR team.

Public Holidays

In NSW the gazetted public holidays for the holiday season are:

  • Christmas Day Friday 25 December
  • Boxing Day Saturday 26 December
  • Additional Day Monday 28 December 2020
  • New Year’s Day Friday 1 January 2021
  • Australia Day Tuesday 26 January 2021

Can employees refuse to work on Public Holidays?

Employers can request that employees work on a public holiday if the request is reasonable. Likewise, an employee can refuse to work on a public holiday if the employer’s request is not reasonable. In determining whether the employer’s request is reasonable, under the Fair Work Act a broad range of factors are taken into account.  These include:

  • The nature of the employer’s workplace and the nature of the employee’s work
  • The employee’s personal circumstances
  • Whether the employee could reasonably expect the employer might request work on the public holiday
  • Whether the employee is entitled to receive overtime or other penalty payments that reflects the expectation to work public holidays
  • The type of employment of the employee (eg whether full-time, part-time, casual or shift work)
  • The amount of notice in advance of the public holiday given by the employer to the employee
  • The amount of notice given by the employee when refusing a request to work on a public holiday.

Payment for Public Holidays

A permanent employee who is absent from work on a public holiday is entitled to be paid their usual pay for his or her ordinary hours that would have been worked, even if they reasonably refused to work that day. Payment is at the employee’s base rate of pay (which excludes bonuses, loadings, allowances, overtime or penalty rates). Casual employees who refuse to work on a public holiday are not entitled to payment.

For Award covered employees or employees covered by enterprise agreements, it is important to check the penalty rates which apply on public holidays. Where a public holiday falls on a weekend, as it does on Boxing Day this year, there may be an entitlement to either the greater of the applicable penalty rates between the public holiday and the weekend penalty rates or both penalty rates. It is therefore important to check the Award or enterprise agreement carefully to ensure you pay your employees correctly.

Proposed changes to Employment Laws

Also, very topical in the lead up to Christmas this year is the Government’s significant proposed changes to employment laws in Australia. These include:

  • The way casuals are defined and treated
  • Changes to underpayment of wages, compliance and enforcement measures
  • Changes to the way Enterprise Agreements are made and approved
  • Simplification of Modern Awards

On 9 December 2020, the Federal Government introduced into Federal Parliament the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 which set out several reforms to the Fair Work Act 2009 to address some long-standing issues in these areas.

Our HR experts are experienced in interpreting these reforms and are monitoring the progress of the Bill closely. It seems likely that there will be amendments negotiated in coming weeks and we will provide you with further detail and explanation once the legislation has passed. In the meantime, if you have any questions, please don’t hesitate to contact us directly at [email protected].

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