Are your Payroll and HR Departments ready for the New Financial Year?

As businesses around the country prepare for the end of the financial year, experts are warning organisations they need to be aware of the legislative changes that will come into effect on July 1.

A raft of new legislation including paid parental leave, unfair dismissal thresholds, new minimum wage requirements and award increases will be introduced on Friday, and according to industry experts many companies aren't prepared.

Speaking to SmartCompany, Alison Baker, Partner at Hall & Wilcox advises, “Many employers will need to get cracking and get the right advice about the paid parental leave obligations. There's not much time left."

Here are some of the new legislative requirements businesses will face:

Minimum Wage Increase The $19.40 per week increase on the minimum wage comes into effect from July 1. Employers need to ensure they meet all necessary pay requirements and update their payroll schedules to ensure employees are not underpaid.

Modern Award Increases The recent 3.4% increase in modern award wages, handed down by Fair Work Australia (FWA) will take effect from the first pay period to start on or after July 1. Revised modern awards which include the increased wages will be available on the FWA website.

National Paid Parental Leave Scheme While the Paid Parental Leave (PPL) Scheme was introduced at the beginning of this year, this was only the first stage of a two-phase introduction.

Government processing of the Scheme expires on June 30, so from July 1 employers will be responsible for processing the payments (18 weeks' pay at the national minimum wage to eligible employees who have or adopt a child from that date).

Under the Scheme, employees are obligated to request the benefit from the Family Assistance Office (FAO). Once the FAO is satisfied the employee is eligible for the benefit, it contacts the employer to say the employee has submitted an application, met the criteria, identified them as their employer. If the employer agrees with the application, they then need to provide the FAO with their bank and pay cycle details. The FAO then makes the payment to the employer, who passes it onto the employee.

Baker advises employers to ensure they have processes in place for dealing with the PPL scheme and to be aware that any existing parental schemes they have will also need to be paid.

Still confused? Centrelink have compiled a Paid Parental Leave Toolkit designed to assist employers and HR staff in preparing for their role in providing PPL to their eligible employees. You can download it by clicking here.

Reducing End of Financial Year Stress
Did you know that an effective Time and Attendance System can help reduce the workload associated with the transition to a new financial year?

Here's how:

• Minimise risk by automating compliance with Modern Awards and work rules
• Ensure consistent application of pay rules, policies and workplace legislation
• Cut Payroll Costs by reducing costly payroll errors and inflation
• Reduce Payroll Processing time by automating the transfer of hours direct to your payroll system
• Safeguard you and your business with a complete Audit Trail

Sound like the answer to all your prayers?
If you would like to find out more about automated Time and Attendance Systems and how they can help you manage your end of financial year payroll woes contact Mitrefinch today on 1300 884 831 (Australia) or 09 363 9557 (NZ). Alternatively visit us online