Payroll Management Policy



Payroll Management PolicyIntroductionThe payroll management policy and procedure is a document designed to provide payroll staff clear direction of the businesses rules and regulations for staff, and guidance in staff management and operations. The aim of this procedure is to enable payroll staff to promptly find answers to general payroll issues regarding pay, leave, employment entitlements and conditions of the workplace. It will help staff to be better informed and equip staff with resources. Employee Roles and ResponsibilitiesStaff/DepartmentsRolesResponsibilitiesReports toAward/ContractOr AgreementManagementEmp#1General ManagerBusiness OwnerEmp#2Sales ManagerBusiness OwnerAccountsEmp#3Payroll Office/AccountsWages/Salaries Maintaining Payroll transactions / obligationsSuperannuationWork CoverAccounts Payable/ReceivableCustomer payments and statementsBank ReconciliationOffice AdministrationGeneral ManagerSalesEmp#4Sales ManagerEmp#5Sales ManagerWorkshopEmp#6General ManagerEmp#7General ManagerEmployee Contracts and Fair Work NES StandardsBusiness contracts are based on the NES standards and Fair Work modern awards.The National Employment Standards (NES) are 10 minimum employment entitlements that have to be provided to all employees.The 10 Minimum Entitlements of the NES are:38 maximum ordinary weekly hoursRight to request for flexible working arrangementsParental leave and related entitlements4 weeks annual leave10 days personal/carer’s leave including 2 days compassionate leave, unpaid family and domestic violence leaveCommunity service leaveLong service leavePublic holidaysNotice of termination and redundancy payFair Work information statementPayroll Administrator TasksAdd new employees and provide new employee kitCollate, check, and process timesheetsProcess weekly / fortnightly / monthly / paysMonitor, record and process annual leave applicationsMonitor, record and process personal leave and medical certificatesMonitor long service leaveIssue pay slipsPrepare and process Superannuation Guarantee obligationsPrepare and issue EOY income statementsPrepare, finalise and reconcile all EOY payroll informationPrepare and generate EOY reports for management Manage employee contractsManage employee queriesAssigned HR Expert to the BusinessBusiness subscribes to HR Expert “ABC”.Login Details:______________________ Password:___________Contact Person_____________________ Phone:___________ Email:_______________Payroll InstructionsPayroll Business GuidelinesPrivacyPayroll administrators are required to maintain confidentiality over all employee information and keep it secure. Refer to basic principles of Privacy Act 1988. Strengthen payroll confidentiality by assigning the necessary payroll task to specific personnel. Most Accounting software programs allow this function if more than 1 person is using the software.Tax File NumbersPrivacy for the TFN is of the utmost importance and tax declaration forms should be stored in a secure place and not accessed by un-authorised personnel.As a recipient of a TFN, payroll administrators must ensure that access to records containing TFN information is restricted to individuals other than those who have authority to access by the employee.Many current accounting software programs allow electronic reporting of employees TFN declarations when commencing with their employer, this can alleviate the necessity of storing these forms.Salaries & WagesPayroll and confidentiality go hand in hand. Payroll information will not be provided to any other staff or third parties (such as banks) unless prior written approval has been provided by the employee to release such information.Remuneration, Allowances and DeductionsAllowancesTravel allowance paid at 72c per km (as per ATO rate)Car allowance for employees _______________________________Mobile phone for employees ________________________________Other…DeductionsChild support – both employee and Services Australia must be informed of changes to salary.Salary Sacrifice arrangementsRepaymentsPenalties and LoadingsCheck relevant industry award to ensure correct loadings and penalties have been applied (if applicable).Staff ReimbursementsReimbursement to staff requires approval by business owner with detailed documentation for record keeping of the reimbursement.OvertimeOvertime must be approved by owner before the overtime is performed and payroll office to be informed of the hours and the reason for the overtime.BonusBonuses may be paid on performance based annually.Annual Leave4 weeks annual leave is paid to full time staff (pro-rata for part time employees) as per NES Standards. All Annual Leave requests must be presented to payroll and management staff within 4 weeks before leave.Personal Leave – Medical Certificate required10 Days paid personal/carer’s leave (pro-rata for part-time employees) 2 days unpaid carer’s leave as required, 2 days compassionate leave as required and 5 days unpaid family and domestic violence leave (in a 12-month period) as per NES Standards. The Business has a legal right to ask employee for evidence supporting their absence therefore, medical certificates must be provided before personal leave is paid.A medical certificate will be required if personal leave is taken either before or after a public holiday or national long weekend.Other LeaveCommunity service leave is unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service.Appropriate documentation and notice is required for Parental Leave and related entitlements, leave without pay and Long Service Leave.Pay SlipsPay slips must be issued to each employee within 1 working day of their pay day, by email.All employees to sign an initial authority for pay slips to be emailed.Setting Pay RatesStaff review and change of pay rates must be controlled and approved by business owner.Pay rates will be reviewed annually on individual’s performance review.Award/Contract/AgreementModern Awards are used in the BusinessClerical Award (Fair Work Modern Awards)Agreements#______________________Other____________________________Other____________________________SuperannuationSuperannuation is set at the current minimum standard rate 9.5%. From July 1st 2021 the rate will increase to 10.0% with 0.5% increments annually up to 2025-26, when the Super Guarantee rate will be set at 12.0% ATO - Superannuation Guarantee percentage.Superannuation Choice of fund form must be signed and returned to payroll staff within 2 weeks of starting with the business.SuperStream payment platform runs through the software / ATO Small Business Clearing House / Superfund.New StaffEssential Documentation for New StaffAll new employees will be provided with the following documentation for completion and returned to the Business owner for processing.The following documents will be given to new employeesFair Work Information Sheet (Fair Work Information Sheet)Employment contractSuperannuation choice formAnnual leave request applicationEmployee form to outline employee details and bank detailsTFN declarationEmployee authority to email pay slipEmployee authority to email income statementEmergency contact detailsPayrun ProcessesPay Run CycleOur Business Pay Cycle is fortnightlyPay Run ProcessCheck for any New StaffCheck for any Annual, Personal or Long Service Leave request documentationCheck for allowances, deductions, or staff reimbursementsProcess Timesheets Run PayrunCreate payment file (ABA.file)Gain approval to pay (see below payroll payment plan)Email pay slipsPayroll Payment PlanBusiness Owner makes the paymentProvide business owner the fortnight payrun reportSend via email - payroll bank file (ABA.file)Business owner to make payment ORPayroll Officer makes the paymentProvide business owner fortnight payrun reportGain approval to make paymentMake payment via online banking (upload ABA.file)Payroll Officer will need to have independent online banking authorisationEmail business owner receipt and details of paymentHR Intermediary NotesDateIssueHR Expert Question/sHR Expert AdviceActionReferencesATO – Guide for EmployersATO – Reporting on PAYG WithholdingFWO – Modern AwardsFWO – Small Business ShowcaseFWO – Fair Work Information Sheet ................
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