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

Employers to run Paid Parental Leave Scheme through their Payroll or risk large fines

Aussie businesses could face fines of up to $33,000 if they fail to run the government's new paid maternity scheme through their payroll.

Thousands of mothers have applied for the $570-a-week paid parental leave scheme since it was introduced on January 1, according to new figures released by Families Minister Jenny Macklin.

Faced with a choice between the paid parental leave scheme offering up to $10,000 to working mums and the $5000 baby bonus, available to stay-at-home mums, eligible parents are flocking to the new scheme, with over 15,500 families lodging applications to date.

But small business groups are fighting back over demands they administer the scheme after July 1, with a legislative showdown brewing as Parliament resumes. They advise that many employers’ simply are not aware of the scheme and the potential fines they could face for failing to comply.

MPs will vote on Coalition reforms to force the Gillard Government to instruct Centrelink to keep running the scheme.

Ms Macklin told Sunday Herald Sun she was determined to see the scheme administered by business rather than Centrelink. "Paid parental leave is a workplace entitlement, just like annual leave or sick leave," she said.

"Our scheme helps employers retain skilled and valuable staff...It's important for women to maintain a connection to the workplace.”

"Employers will pass on Government-funded parental leave pay to their long-term employees through the employee's usual pay cycle and will receive the funds from the Government in advance," she added.

But the Opposition’s Small Business Spokesman Bruce Billson said: "It's an unnecessary burden on small business and exposes employers to big fines."

The Council of Small Business of Australia (COSBA) Executive Director, Peter Strong, said there was little explanation for the red tape other than a philosophical view that the maternity payment should be a workplace entitlement rather than a welfare payment.

"It's about time the Government funded paid maternity leave and that's great, but we don't want to be the paymaster," he said.

Parents can apply for the taxpayer-funded scheme up to 3 months before the birth of their child and can take it in conjunction with, before or after any employer-funded leave. It is taxed but can also be transferred to fathers if mothers return to work early.

(Sources: Sunday Herald Sun and Payroll News)

Mitrefinch to feature at The Association of Payroll Specialists’ upcoming Payroll Expo

Mitrefinch Australia will be exhibiting their range of Time and Attendance software solutions at the upcoming Association of Payroll Specialists’ (TAPS) Annual Workplace Review Event in Sydney later this month.

As Australia’s biggest and longest running payroll conference, this year’s Workplace Review boasts an impressive educational line-up with a strong emphasis on recent changes to legislation, including a “Comprehensive guide to the NEW Paid Parental Leave Scheme”, as well as other sessions related to; the Fair Work Act, Superannuation, Terminations, Expats, and an Excel Masterclass.

Also new in 2010 is the “Payroll Expo” where attendees can learn about the latest payroll technology and tools to implement best practices, operational efficiencies and cost savings. Mitrefinch will be exhibiting as part of the Payroll Expo at Booth 8.

The event will take place on October 21-22 at The Sebel Hotel in Parramatta.

The Payroll Expo is open to the general public on Thursday 21 October from 2pm to 5pm. Entry is FREE, but you must register by sending an email to expo@payroll.com.au. Mitrefinch have also negotiated a special deal for clients who want to attend the conference. By writing on the application form that you are a Mitrefinch client, you can attend the conference at the discounted TAPS member rate of $1,100 for the 2 days.

To download the application form or for more information about the Conference and Payroll Expo visit http://www.payroll.com.au/

ABOUT TAPS
Established in 1990, The Association for Payroll Specialists (TAPS) is the voice of the Australian payroll community, representing over 6,500 payroll professionals. TAPS provides a number of specialised benefits necessary to assist payroll people and keep them up-to-date with Australia’s unique payroll environment including; training, qualifications, publications and recruitment.

For more information see: www.payroll.com.au

New Coalition may result in an extension to the benefits offered by the Paid Parental Scheme

With the Labor Party back in power, they have renewed their commitment to complement benefit enhancements under the new Paid Parental Leave Act.

Sussan Ley, the Federal Coalition's new childcare spokeswoman, says she would like the party's 26-week paid parental leave scheme to remain part of its policy platform.

However, some Coalition MPs have expressed concern about the scheme's generosity, advising the Liberal Party that they prefer its more generous parental leave proposal to the Paid Parental Leave Act and will give it a majority on "any policies on which they agree.”

Ms. Ley says she will consider any changes proposed by her colleagues, but believes the general structure of the scheme is sound. She said, "I am extremely supportive of the current proposal and I know members of the Coalition are".