IMPORTANT! Do you have employees on salary?
Annual Reconciliations of Annualised Salary Arrangements are due 1st of March 2021:
The new annualised salary provisions for full-time employees came into effect on the 1st of March 2020 and impacted a range of Modern Awards. The changes had a significant impact on the way businesses in certain industries manage and implement payment arrangements for their staff.
The Steps to Compliance
1. Know if your Award is impacted by checking the Fair Work Australia website
2. Ensure your employee has a signed employment contract which identifies all award entitlements incorporated into the salary (eg penalty rates)
3. Calculate what their salary covers and what outer limits the employee can work.
4. Issue a letter confirming the method of calculating the annual salary and outer limits
5. Use timesheets to record start and finish times of work (including unpaid breaks) and have your employees acknowledge this timesheet after every pay period
6. Conduct a reconciliation every 12 months, and on termination, to ensure no underpayment has occurred. The first reconciliations are due 1st of March 2021
Need help?Our payroll specialist Kylie Stewart is just a call away on 07 3883 8999.