The Fair Work Ombudsman is watching payroll. They have been investigating many businesses and conducting audits on businesses it believes are not paying their staff correctly or miscalculating entitlements, then imposing heavy penalties on the business owners and if necessary the business’s advisors.
If you are employing staff you are legally required to keep accurate and complete wage and time records in plain English, unaltered (unless correcting an error) that are easily available for inspection.
Most financial records need to be kept for five (5) years however payroll records are required to be kept for a minimum of seven (7) years with the following information to be kept as a minimum:
- Time Sheets – signed by employees detailing start and finish times, allocated lunch breaks and overtime
- Personal Detail Records – Employee details ie personal details, Tax File Numbers (TFN), DOB, Emergency Contact
- Letters/Contracts of Employment – Terms of Engagement, Employment Contracts and Variation,
- Superannuation Benefits and calculations – Including periods paid and amounts, receipts of contributions and contribution paperwork submitted to the superannuation fund or clearing house
- Payslips
- Proof of Payment – Bank Transfer Slips
Whilst it is not a legal requirement to keep the following documentation, it is best practice to do so:
- Reviews and Performance Letters
- Certificates – Trade or Qualifications
- Resumes and Letter of Application
Employers are required to provide employees with a payslip within one (1) business day from processing payroll.
With so many payroll systems available it makes sense to discuss with your accountant what options would suit your business best. From online timesheet entry direct from your employees to being able to have staff upload medical certificates whilst they are on leave and submit leave applications, payroll processing has never been easier.
Record keeping is only half the battle, staying on top of pay rates and penalties is a key requirement and ensuring your obligations are met by the due dates for Superannuation Guarantee Payments and Payment Summary reports.
If in doubt about your business compliance with payroll or you would like to discuss how JSM Accounting Group can assist you with your payroll needs, call us today on 07 3814 6512.
For further information checkout this fact sheet or contact our friendly team of payroll specialists here.