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Many staff, particularly those that are older, may elect to make additional contributions to superannuation by way of salary sacrifice so that they can utilise the lower tax that applies to such amounts. However, there are limits to these tax concessions. The limits for 2014-2015 and 2015-2016 are: $30,000 (if aged under 50 at income…

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Managing underperformance

Useful information in regards to managing staff. http://www.fairwork.gov.au/about-us/policies-and-guides/best-practice-guides/managing-underperformance

Good Friday  April 3, 2015 All States and Territories and New Zealand Easter Saturday April 4, 2015  Not TAS, WA or NZ Easter Sunday April 5, 2015 NSW and VIC only Easter Monday April 6, 2015 All States and Territories and New Zealand Easter Tuesday April 7, 2015 TAS – not a State-wide holiday. For…

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Unclaimed superannuation

The ATO has reported that there is currently $5.8 billion of unclaimed superannuation.  Your staff will be most appreciative if you are able to help them find out whether some of this money actually belongs to them.  For those interested in finding out more and forwarding on to staff, here is the link: https://superseeker.super.ato.gov.au/SuperSeekerWeb/default.aspx?pid=71

Taking out more PAYG tax

At times staff may want to have additional PAYG tax withheld from their pay. The current requirement is that the employee must complete an Upwards Variation, which is a specific ATO form and also forms part of the Withholding Declaration. From 1 February 2015 the requirement for staff to complete this form will be abolished….

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Q/ An employee is using their Annual Leave in conjunction with their unpaid parental leave. What should I do about public holidays? A/ If the public holiday falls during the period covered by the paid annual leave time, then the leave period is extended by the public holiday as usual (That is, it is only…

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BACKPAY – THE INS AND OUTS

How is it taxed? Where does it go on a payment summary? Is it superable? It is taxed using the ATO’s tax table for Backpay, bonuses, commissions and similar payments. You will use either Method A or B. The method for marginal rates tax is shown below: 1. Use the Tax Tables to work out…

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TERMINATION PAYMENTS

Q/ One of our employees has given us notice and will be terminating at the end of the month. How soon do we have to pay out their worked hours and unused entitlements? A/ The Fair Work Act does not specify when amounts due on termination should be paid to the employee. The Fair Work…

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FAQ’s in Payroll

Q1.. We have a full-time employee who has been given approval to have 1 week’s annual leave cashed out as per our enterprise agreement. Do we need to pay super on the cash-out of annual leave? A.. Yes, the cash-out of leave is liable for super as it is considered Ordinary Time Earnings. Q2.. We…

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Last week the Government had its proposed changes to the Superannuation rates pass through Parliament and receive Royal Assent (though with some variation to the original proposal making the delay to the increase longer. The changes that have now passed mean that Superannuation will be frozen at 9.5% until 1 July 2021: Financial Year SG…

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