By Amy Sims

Is anyone else excited that 30 June is only a few weeks away? Stocktake sales, end of financial year parties, pay increases, the list goes on. But are you prepared for the new financial year?

From 1 July there are a few changes to payroll that you need to be aware of - award rate pay increases, single touch payroll and the superannuation guarantee amnesty.

Award Pay Increase

The Fair Work Commission has recently announced a 3.5% increase (for national system employers) and the Western Australian Industrial Relations Commission announced a 2.5% increase to minimum wages (for state system employers) from 1 July. Whilst many of you will be paying above award wages or in accordance with a specific state or federal award, this is the perfect time to review the award that governs your employees. Guaranteed there will be changes to your minimum award rates and the new pay guides will be issued closer to the end of financial year.

A little reminder - you will need to apply the wage increase for your employees from the first full pay period starting on or after 1 July. For example, you pay your employees weekly Wednesday to Tuesday with pay day on a Wednesday. The wage increase will not affect your pay run on Wednesday the 4 July, but will come in to effect from Wednesday 4 July to Tuesday 10 July with pay day on 11 July.

Single Touch Payroll

For employers with 20 or more employees, Single Touch Payroll (STP) comes in to effect from 1 July 2018. Employers with less than 20 employees don’t tune out, this is likely to also apply to you from 1 July 2019, subject to the legislation being passed.

Single Touch Payroll is a new system of reporting your wages and salaries, allowances, deductions, PAYG withholding and superannuation to the Australian Tax Office each pay run. It should be as easy as the click of a button although we will wait and see. The majority of the software packages (for example MYOB, Xero, Reckon and Agrimaster) are all STP ready.

Are you ready for STP? Now is the perfect time to update your software package so that you are ready for STP. It is also a good time to review your employees’ payroll information to ensure all PAYG withholding and superannuation is being calculated correctly.

Please be aware anyone can opt in to single touch payroll from 1 July although once you have opted in you cannot opt out. If you have less than 20 employees and don’t have to register please don’t automatically opt in if your software provider prompts you to.

Superannuation Guarantee Amnesty

The Government have generously introduced a 12 month amnesty for employers to correct underpayment of superannuation guarantee. This one off opportunity came in to effect on 24 May, allowing employers to correct any past underpayment or non-payment of superannuation guarantee without any penalty. There will however be nominal interest charged on the underpayment.

If you voluntarily notify the ATO of any shortfalls of superannuation guarantee during the amnesty period and before the commencement of an audit, you will not be liable for penalties and you will be able to claim a tax deduction for the catch up superannuation contributions made.

Please be warned if you do not come forward during the amnesty period you may face higher penalties in the future. Also the ATO will continue to conduct superannuation audits if they become aware of your underpayment.

Superannuation guarantee is calculated at 9.5% on ordinary time earnings if your employee earns over $450 a month. Superannuation must be paid at least four times a year, by the 28th day after the end of a quarter. The introduction of Single Touch Payroll means the ATO will be able to data match with Super Stream to determine underpayments in a more timely manner.

If you have any queries regarding any HR issues please contact Jenni or your accountant who will be happy to assist you with any queries or concerns you may have.

Agrimaster-Plus payroll

Last month Agrimaster released the NEW Agrimaster-Plus subscription which includes payroll. The new subscription price is $1,200 per year, only $100 more to now include payroll. This allows you to pay 5 full time employees and up to 30 casual employees. Agrimaster-Plus is also STP ready.

If you are an “old member” subscriber you can continue to pay your existing subscription amount although if you require payroll you will need to upgrade to Agrimaster-Plus for $1,200 per year.

If you would like any more information regarding Agrimaster please contact Dot Ruck or Kym Arnold in our office.

Toss the Boss

This year Lincolns have decided to participate in Triple M’s Toss the Boss, being held on Friday 29 June. By raising at least $500 we can push one of the partners in to the icy cold waters of Princess Royal Harbour. Or better still if we raise $2,000 we can toss all four (lucky for Russell he will be away).

All money raised goes towards the Regional Assistance Fund at Perth Children’s Hospital. Our only dilemma is we don’t know which partner to toss in the water!

If you would like to donate towards our campaign and vote for the partner you would like to see tossed in the harbour please email maddisonh@lincolns.com.au. To see what fundraising events we have already held please check out our Facebook page.

Payroll changes - are you ready?