Employment And Payroll Compliance

The management and reporting of employee and payroll functions of a business is an important aspect of running a business. As well as ensuring all employees are correctly paid there are serious reporting aspects that have significant consequences if not completed correctly and on time.

 Payroll compliance requirements include:

*  Pay rates comply with Fair Work, National Employment Standards and Awards/Enterprise Agreements

 * Superannuation Guarantee - as well as ensuring all employees receive their correct pay, employers are required to pay a minimum percentage of an             employees ordinary times earnings into their super fund. The current rate is 11.5% increasing to 12% by July 2025.

 * PAYG Withholding Tax - Employers must withhold the correct tax from the employee gross wages and remit these amounts regularly to the ATO and  report the amounts using the Activity Statements.

* Single Touch Payroll (STP) - this is a mandatory reporting system requiring employers to report salaries, wages, PAYGW and super directly to the ATO  each pay cycle. The reporting is required to be electronic utilising approved software.

Employment and payroll compliance in Australia is a critical responsibility for employers. By understanding and adhering to legal requirements,  businesses can foster a fair and lawful workplace while avoiding costly penalties. Staying pro-active and informed is key to maintaining compliance and  supporting a productive workplace.

Should a business not comply in a timely manner there are numerous penalties and charges that are able to be enforced. These include;
1. Superannuation Guarantee Charge
2. General Interest Charges
3. Late Penalty Notices
4. Director Penalty Notices
5. Garnishee Orders
6.  Liquidation of Assets