Payroll Updates – Accountants advise on Minimum Wage, Super Increase and STP Finalisation Date
Navigating Payroll? We can help keep you up to date on changes this year, including new rules for casuals.
Minimum Wage Increase – 1 July 2021
The national minimum wage increases on 1 July by 2.5% to $20.33 per hour (or $772.60 per week).
The minimum wage increase applies to employees if an award or national minimum wage defines their pay rate.
This year, the Fair Work Ombudsman (FWO) has implemented minimum wage increases to awards in a staggered approach. Most awards increase on 1 July; however, the Retail Award will increase from 1 September, and a few awards will increase on 1 November.
For full details of award increases, visit Fair Work Ombudsman Annual Wage Review 2021.
Changes to Casual Employment
The Fair Work Act has been amended to include a Casual Employment Information Statement (CEIS), a formal definition of casual employment, and a pathway for casual employees to become permanent employees. Employers must now provide the CEIS to all casual workers upon starting with the employer, along with the National Employment Standards and Fair Work Information Statement. Visit the FWO Casual Employment Information Statement webpage for details and to download the form for your employees. For more information about casual employment definition and the options for becoming a permanent employee, visit FWO Changes to Casual Employment to check if you have to offer permanent positions to your employees.
Superannuation Increase from 1 July 2021
The superannuation guarantee statutory rate increases to 10% from 1 July. Your payroll software should automatically capture the changes, but check the rate is correct when you do your first pay runs in July. Review any agreements or annualised salary arrangements you have with employees that may be inclusive of superannuation.
Single Touch Payroll Finalisation
The ATO recognises the impacts of COVID-19 on the Australian community. If you need additional time, you can complete your STP finalisation up until 31 July.
For an employer with a mixture of both closely held payees and arms-length employees, the due date for end-of-year STP finalisation for closely held payees is 30 September each year. All other employees are due 14 July each year.
Small employers (fewer than 19 employees) that only pay closely held payees have until the payee’s income tax return due date.
Review Your Payroll Systems
The start of the financial year is the best time to review your payroll setup, policies and costs. Talk to us if you need to implement payroll policies, review payroll costs or update your casual worker details. And we can help you get the STP finalisation done on time – getting it right the first time means your employees will have accurate information for their tax returns. We can also review your pay setup and make sure it’s right for the start of the new financial year.
Let’s make a time! Call 38121745 today.