fringe hair cut

Increased penalty rates for casual hair and beauty weekend workers

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Hair and beauty workers get penalty rate hike

As part of the agreement, the casual weekend penalty rates will increase in five instalments starting from 31 January 2022 and finishing on 31 December 2023. From 3 November 2021 to 30 January 2022, casuals will continue to be paid their usual weekend penalty rate.

Currently, under the Hair and Beauty Award, a casual’s weekend penalty rate doesn’t include their 25% casual loading. This is changing so that casuals who work weekends are now entitled to be paid a weekend penalty rate that also includes their casual loading to compensate for permanent entitlements like sick and annual leave.

The announcement follows a decision made by the Fair Work Commissioner back in October after a process involving unions and industry associations.

Back in January 2020, Fair Work invited the Australian Workers’ Union (the AWU), the Shop, Distributive and Allied Employees Association (the SDA) and Hair and Beauty Australia (HABA) to provide notice as to whether they wished to provide further materials in relation to the Saturday and Sunday penalty rates applicable to casual employees covered by the Hair and Beauty Award.

In July, Hair Stylists Australia (which is powered by the AWU) announced an agreement had been reached between themselves, the SDA and HABA which they would put forward to the Fair Work Commission.

HSA said a total of around $5.75 per hour will be added to weekend casual rates, and at the end of the phasing-in period, this means a casual hair stylist working a full eight-hour day over the weekend would take home an extra $92.

Meanwhile, the Hair and Beauty Award has already increased by 2.5% from 1 November alongside a whole bundle of industry awards as part of its Annual Wage Review 2021, as announced back in June.

Notch Above Bookkeeping are Xero business bookkeepers and Certified Xero Platinum Partners Australia-wide, specialising in cloud bookkeeping setup, training and ongoing support. Call us on 1300 015 130.

Source: mybusiness

green payroll binder

Stapled super funds start this month

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Request stapled super fund details for employees

What you need to do from 1 November 2021

From 1 November 2021, if you have new employees start, you may have an extra step to take to comply with choice of fund rules if they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account that is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.

If you don’t meet your choice of super fund obligations, additional penalties may apply.

The change aims to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job.

Get ready

To make sure you’re ready to request stapled super fund details, check and update the access levels of your authorised representatives in ATO online services.

If an authorised representative doesn’t:

  • have full access to ATO online services, they will need to have the ‘Employee Commencement Form’ permission in order to request a stapled super fund
  • need to access this service, you should remove this permission for them to protect your employees’ personal information.

What employers need to do from 1 November 2021

You may need to request stapled super fund details when:

  • your new employee starts on or after 1 November 2021
  • you need to make super guarantee payments for that employee, and
  • your employee is eligible to choose a super fund but doesn’t.

You don’t need to offer a choice of super fund to some employees, but you may still need to request their stapled super fund details. This includes employees that are either:

  • temporary residents
  • covered by an enterprise agreement or workplace determination made before 1 January 2021.

To review each itemised step of the stapled super fund process, visit the ATO website or contact Notch Above’s team of Xero certified cloud business bookkeepers Australia-wide on 1300 015 130.

Source: ATO

green payroll binder

Stapled super funds

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Extra ‘super’ step when hiring new employees

Most new employees are eligible to choose the super fund into which employers pay their super guarantee contributions.

Currently, when a new employee doesn’t choose their own super fund, the employer must pay super contributions into their default fund.

From 1 November, if any new employees start, the employer may have an extra step to comply with the choice of fund rules.

If a new employee doesn’t choose a super fund, the employer may need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account that is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.

The change aims to reduce account fees by stopping new super accounts from being opened each time they start a new job.

From 1 November, employers will be able to request stapled super fund details for new employees using Online services for business.

What employers can do now

To make sure you’re ready when the time comes, check and update the access levels of your authorised representatives using Online services on behalf of your business. This will also protect the personal information of your employees.

Please contact Notch Above’s Business Bookkeepers Australia-wide on 1300 015 130 if you have any queries about stapled super funds prior to 1 November. We are Xero Platinum Certified bookkeepers operating via Xero cloud bookkeeping.

Source: ATO

retail shopping mall

Minimum Wage Rate 2.5% increase

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Queensland Minimum Wage Rate will increase by 2.5%

Minimum wages in the Retail Award increase from 1 September.

The FWC’s Pay Calculator and Pay guides now have updated rates.

For the list of awards that will increase later in the year, see When does the increase start?

Following the Annual Wage Review 2021, the Fair Work Commission (FWC) announced a 2.5% increase to the national minimum wage and all award wages. The increase to award wages is happening in 3 stages. The FWC has also issued decisions to change some terms and conditions in several awards.

What do you need to do?

You can find the new minimum pay rates in the FWC’s Pay Calculator and Pay guides, for all awards that increased from 1 July and 1 September 2021. The Pay Calculator and pay guides will be updated for the awards increasing in November closer to their start date. For the list of awards that increase in November, see When does the increase start?

You can also use Find my award if you’re not sure which award applies to you.

Who does the increase apply to?

The increase applies to anyone who is paid minimum award wages or the national minimum wage.

Most employees are covered by an award. If you’re not sure which award applies, use Find my award.

If you’re covered by a registered agreement, you should check it to see whether this increase affects you.

For anyone not covered by an award or an agreement, the new national minimum wage is $772.60 per week or $20.33 per hour.

When does the increase start?

The new national minimum wage applies from your first full pay period on or after 1 July 2021.

There was also an increase to the Super guarantee for all eligible employees from 1 July 2021.

The increase to minimum award pay rates is happening in 3 stages.

The increase doesn’t affect employees who already get paid more than their new minimum wage.

1 July 2021 award increase

Most awards increased from the first full pay period on or after 1 July 2021.

1 September 2021 award increase

The increase for the Retail Award applies from the first full pay period on or after 1 September 2021. This means if you have a weekly pay period that starts on Mondays, the new rates apply from Monday 6 September 2021.

You can find the new minimum rates in our Pay Calculator and Pay guides.

1 November 2021 award increase

21 awards increase from the first full pay period on or after 1 November 2021. Read more »

Please note, wage rate changes will need to be done manually which we do in consultation with our payroll clients. We strongly recommend that you make time to check your settings.

For assistance, contact our Xero Platinum Certified business bookkeepers at Notch Above Bookkeeping, Australia-wide, on 1300 015 130.

Source: Fair Work Ombudsman

workers looking at laptop

STP Phase 2 starts January 2022

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Learn what STP Phase 2 means for employers

Single Touch Payroll (STP) Phase 2 reporting starts 1 January 2022.

If you employ staff, you’ll need to be ready for this change.

If your business uses Xero, it will be compliant.

If not — or you know someone who is not — there’s time to start thinking about and planning your STP Phase 2 reporting now.

STP Phase 2 reporting means changes to the way employers report:

  • amounts paid to staff
  • income types
  • employment conditions.

The way you lodge and the due date of your STP reports don’t change.

Your payroll software should be updated by your software provider with steps provided for you to take. However if you use a manual system, we strongly recommend that you make time to check your settings in advance of the changeover deadline.

Check the ATO’s guidelines and contact the team at Notch Above Bookkeeping on 1300 015 130 to help you understand the changes and what they mean for your business.

Australian Accounting Awards Bookkeeping Firm of the Year Finalists 2021 and 2020.

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keyboard and coffee

Employment Contract Tool

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Australian Government Employer Contract Tool

Build your own employment contract for an employee under Australia’s Fair Work System that is tailored to your business needs.

The Government has launched a new online tool for small business owners that takes the stress out of hiring their first staff member and reduces the risks of costly mistakes

Who can use it

This tool helps small business employers to make a basic employment contract that complies with workplace laws. Use it to create a contract for an employee under the national industrial relations system. You can use it for full-time, part-time and casual employees who are covered by an award.

In the tool you’ll find:

  • conditions that you must provide to your employee
  • optional clauses to help set expectations and protect your business.

To use this tool, you’ll need to pay your employee an hourly or weekly wage. We don’t provide for salaries in the tool due to their complex requirements.

Know your award

As you work through this contract tool, you’ll need to add details about your employee’s terms and conditions. We’ll help you to find these details in each section, but you’ll need to know the:

  • award
  • employee’s classification level in the award.

If you’re not sure what the award is, use the Fair Work Ombudsman’s Find my award tool.

Please note that this tool is unsuitable for some types of workers. Visit https://employ.business.gov.au/ for more information or to start building a contract.

Contact Notch Above’s Bookkeeping specialists Australia-wide on 1300 015 130 for specific advice about your payroll.

Source: business.gov.au 

Superannuation guarantee increase on 1 July

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Employers should be managing the super guarantee (SG) increase which comes into effect 1 July

An SG base rate rise is set from 1 July which will increase from 9.5% to 10%, followed by incremental half percentage point increases each year to 12% on 1 July 2025.

Businesses owners should establish an approach strategy to the increase now because missing deadlines is likely to attract ATO attention. And it should be done with transparency that clearly communicates how employees’ payslips will be impacted.

Employers should keep in mind that this is not a one-off increase.

While the legislation is for the employer to contribute the extra half per cent without impacting take-home wages, this may not be the case across all workplaces. Check with us first for any clarification required about your business or sector.

Employee contributions are required to be paid on at least a quarterly basis. Employers are urged to brace for the SG increase on 1 July by allowing plenty of time for payroll changes via business activities that sustain cash flow.

Do note that software providers will be making the adjustment to their systems but, depending on your setup, if you have manually entered a rate you may need to adjust this.

Click here to review the ATO’s super rates and thresholds or contact Notch Above’s Bookkeeping specialists Australia-wide on 1300 015 130 for specific advice about your payroll.

Australian Accounting Awards Bookkeeping Firm of the Year Finalists 2021 and 2020.

cafe counter front of house

Single Touch Payroll changes

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What small businesses need to know about changes to STP this EOFY

As a small business owner, you’ve likely heard about Single Touch Payroll (STP) by now.

Many employers will already be using STP. However, with the ATO rolling the initiative out in stages, there are still some that have been offered exemptions. That is, until now.

From 1 July this year, most small businesses will need to be STP compliant.

This includes small employers with closely held payees, as well as some micro-businesses and seasonal employers. The changes could mean that you have to opt into STP for the first time or start filing employees who aren’t already being reported with the ATO. If you’re feeling unsure about whether these changes will affect your business, we’ve compiled all the information you need to help determine your next steps.

Although EOFY is just around the corner, there’s still time to get prepared. With the help of your bookkeeper and Xero, together, we can make the transition to STP as smooth as possible.

What does ‘closely held’ mean?

According to the ATO a closely held payee (otherwise known as a closely held employee) is an individual directly related to the entity from which they receive payments. For example, this would include relatives in a family business, or beneficiaries of a trust fund.

Depending on your working arrangements, some businesses process irregular or infrequent pay runs for family members on their books. That’s why, up until 1 July 2021, small employers (with 19 or fewer payees) have been exempt from STP reporting of closely held payees.

What’s changing with how my business remunerates closely held payees?

By the end of FY21, employers with fewer than 19 employees will have to report closely held salaries or wages through STP. Whether it’s your sister, great-uncle, cousin or in-law, every family member on your books, counts. There are three payment reporting requirements to be aware of:

  1. Report and process payroll through STP on or before payday
  2. Report the accurate payroll amount with STP once per quarter, on or before the BAS due date
  3. Report a reasonable estimate with STP once per quarter, on or before the BAS due date

Out of the three reporting options, there’s no one-size-fits-all approach – it comes down to what works best for your business’ needs.

Are there any other changes to know about?

As well as small employers with closely held payees, some micro and seasonal employers will now have to report on or before the payment date – not quarterly – unless they receive a concession. This includes businesses with four or fewer employees, including the following industries:

  • Agriculture, fishing and forestry
  • Not-for-profit clubs and associations
  • Seasonal and intermittent employers

Microbusinesses in each category may still be eligible for STP reporting concessions, such as quarterly or exceptional circumstances exemptions. Ask your advisor about how you can apply for a concession, and head over to the ATO website for more details.

The STP changes for this EOFY are one of the final hurdles in transitioning most Australian small businesses to a more streamlined reporting system. Although the initiative is still evolving, with the support of Xero and your trusted bookkeeper, you’ll be able to tackle any new changes head-on.

Notch Above Bookkeeping has been providing business owners with accurate and timely bookkeeping services that makes them more efficient and gives them peace of mind for 15 years. Let us help take your business to the next level of bookkeeping digitally, via the cloud! Call us on 1300 015 130.

The team from Notch Above Bookkeeping

Winning and keeping talent

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How business owners can win and keep the right talent in 2021

The ongoing uncertainty around COVID-19 has resulted in an unstable economy, with the impact on the job market hard to predict.

Despite this, many small business owners remain optimistic about the coming months.

In fact, Xero’s latest research revealed that almost half (48 per cent) of SME owners believe small businesses will be key to kickstarting the economy once lockdown and tier systems are relaxed – positive news for jobseekers.

Still, optimism must be met with preparation. If you’re a small business owner, here are four ways to set yourself apart as a top employer. 

Offer autonomy 

Many of the ways that COVID-19 has changed the way we work are here to stay, and business owners need to learn how to support their employees in the ‘new nine to five’. For example, in a post-Covid world, some employees may prefer working in an office for structure and collaboration, while others will require flexible working to flourish. It’ll be challenging for both employers and employees to strike the right balance. However, the companies that stand out post-Covid will be the ones that pay attention to how the pandemic has affected their employees’ needs and working styles, and then adapt accordingly.

Invest in your technology

The pandemic has been a catalyst for growth for the adoption of many new tech tools. Our research suggests that over a quarter (26 per cent) of small business owners are now using technology that is increasing the productivity of their business. It also suggests one in five (20 per cent) are looking to invest in artificial intelligence (AI) and machine learning to automate parts of their business. This explosion of technology means a prospective employee may choose to leave your employment to work with a more technology-savvy competitor.

Staying at the forefront of technology with cutting-edge software will position your business as ambitious and forward-thinking. Technology has been at the heart of helping firms adapt throughout the pandemic, and business owners should not underestimate the role it will have in the economic bounceback.

Build an effective employee value and wellbeing proposition

Ensuring the mental and physical wellbeing of employees should not be a reactive exercise when adversity strikes, but a continual process of prevention and protection. In order for employees to thrive, they need to know that their employers care for them around the clock, and not just through challenging times.

Forward-looking businesses will empower employees to find the right mix of tools for their individual needs. For some, this could mean safeguarding time to recharge or prioritise sleep or exercise. Others might carve out time for mindfulness or disconnecting from technology.

Another central element of your employee value proposition is compensation and benefits. To attract top talent, you should reevaluate existing employee packages and ensure you’re making an attractive offer, because giving people what they deserve pays dividends.

Keep your business accountable on diversity

A recent survey by McKinsey & Company showed that nine out of ten executives have found executing their DEI strategies challenging during the pandemic. Although companies have responded rapidly, employees, and in particular diverse employees – including women, LGBTQ+, people of colour and working parents – have struggled the most in the pandemic. The result is that only one in six employees from a diverse background feel supported. This means business owners now have a clear opportunity to build a more equitable and inclusive workplace that strengthens their organisations far beyond COVID-19.

Employees have never required more support than they do right now. For many, this period has been a time of uncovering a radical new approach to work and to life, and this might mean new or higher expectations from employers in a post-COVID world.

Businesses that seize the moment by paying attention, listening to their employees and remaining responsive to changing themes will not only be better placed to support their employees, but will drive sustainable business performance and attract a wider pool of talent to drive future growth.

Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll processing, invoicing and debtor management and BAS returns. We set up systems and checklists to ensure nothing is missed and things are processed when it suits you. We can be involved as little or as much as you like, we give you the flexibility to decide what’s best for your business. Call us today on 1300 015 130.

Source: Xero

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