Payroll terms (A-F)

Australian Business Number (ABN)

• is a unique number issued to a business by the government through the Australian
• visit www.abr.gov.au

Activity Statement (see Business Activity Statement)


Business Activity Statement (BAS)

• is a form prepared and lodged with the Australian Taxation Office (ATO) to report tax obligations relating to Goods and Services Tax (GST), Pay-As-You-Go Withholding (PAYGW), Pay-As-You-Go Instalment (PAYGI), Fringe Benefits Tax (FBT), Wine Equalisation Tax (WET), Luxury Car Tax (LCT), Amounts withheld where no ABN is quoted and other instalments
• visit www.ato.gov.au

Allowance

• Employers often pay employees various types of allowances either to compensate them for unfavourable working conditions or to cover estimated expenses. Allowances are also commonly paid to comply with award requirements. Common examples of allowances include motor vehicle, tools, accommodation, tea, meal, travel, dirt and first-aid allowance.  Allowances are generally subject to payroll tax 
• Source: www.payrolltax.gov.au

Annual leave (AL)

•  (also known as holiday pay) allows an employee to be paid while having time off from work (www.fairwork.gov.au)

Apprentice

• a person who learns a job or skill by working for a fixed period of time for someone who is very good at that job or skill (www.merriam-webster.com)

Australian Securities & Investments Commission (ASIC)

•  is Australia’s corporate, markets and financial services regulator
• visit www.asic.gov.au

Australian Taxation Office (ATO)

• the principal revenue collection agency of the Australian government whose role is to effectively manage and shape the tax and superannuation systems that support and fund services 
• visit www.ato.gov.au

Award

• are enforceable documents containing minimum terms and conditions of employment in addition to any legislated minimum terms 
• Source: www.fwc.gov.au

Backpay

• Past wages and benefits (bonus, increment, overtime, etc.) to which an employee is entitled either because of a retroactive increase or employment practices (such as dismissal or denial of promotion) declared unlawful by a court or tribunal (www.businessdictionary.com)

BAS agent

• a professional who provides a BAS service defined in the Tax Agent Services Act 2009 (TASA)
• a professional who provides a BAS service for a fee must be registered

BAS service 
is defined in the Tax Agent Services Act 2009 (TASA) as:

• working out or advising about the liabilities, obligations or entitlements of a client under a BAS provision; or
• representing a client in their dealings with the Commissioner of Taxation in relation to a BAS provision; and
• where it is reasonable to expect a client will rely on the service to satisfy liabilities or obligations or to claim entitlements under a BAS provision
• Souce: www.tpb.gov.au

BAS provision
is defined in Income Tax Assessment Act 1997 as:

• Part VII (collection and recovery only) of the Fringe Benefits Tax Assessment Act 1986
• the indirect tax laws, including the goods and services tax (GST) law, the wine tax law, the luxury car tax law, the fuel tax law, and Parts 2-5 and 2-10 in schedule 1 of the Tax Administration Act 1953, which are about the pay as you go (PAYG) system 
• Source: www.tpb.gov.au

Bereavement leave (see Compassionate leave)


Bonus

• money or an equivalent given in addition to an employee's usual compensation (www.merriam-webster.com)

Break

• allows an employee to rest for a short period of time during work hours
• rest breaks are also referred to as 'crib breaks', 'rest pauses' or 'tea breaks'
• a meal break is a longer period of uninterrupted rest that allows the employee to eat a meal

Source: www.fairwork.gov.au


Bullying (see Workplace bullying)


Business Activity Statement (BAS)

• is a form prepared and lodged with the Australian Taxation Office (ATO) to report tax obligations relating to Goods and Services Tax (GST), Pay-As-You-Go Withholding (PAYGW), Pay-As-You-Go Instalment (PAYGI), Fringe Benefits Tax (FBT), Wine Equalisation Tax (WET), Luxury Car Tax (LCT), Amounts withheld where no ABN is quoted and other instalments 
• visit www.ato.gov.au

Casual employee

• has no guaranteed hours of work; 

• usually works irregular hours;

• doesn't get paid sick or annual leave;

• can end employment without notice, unless notice is required by a registered agreement, award or employment contract
• Source: www.fairwork.gov.au

Child support

• means financial support under this Act, including financial support under this Act by way of lump sum payment or by way of transfer or settlement of property
• Source: www.austlii.edu.au

Clothing allowance
an amount of money to compensate for the purchase of clothes for work, school, etc. (www.collinsdictionary.com)


Commission payment

• is an amount paid to an employee based on how much they sell
• is normally calculated as a fee or percentage of the employee’s total sales. A commission payment can be called a ‘bonus’ or ‘incentive payment'

• can be paid as an extra incentive on top of an employee’s pay or
• make up an employee’s whole wage (commission only payments)
• Source: www.fairwork.gov.au

Commissioner of Taxation

• head of the Australian Taxation Office (ATO)

Compassionate leave

• a type of leave that can be taken when a member of an employee's immediate family or household dies or suffers a life-threatening illness or injury
• All employees are entitled to 2 days compassionate leave each time an immediate family or household member dies or suffers a life threatening illness or injury
• Source: www.fairwork.gov.au

Contractors (also independent contractors and subcontractors)

• workers who run their own business;
• usually negotiate their own fees and working arrangements and can work for more than one client at a time. Independent contractors are often called contractors or subcontractors (subbies).
• Source: www.fairwork.gov.au

Employee vs contractor

• There are a number of factors which may contribute to determining the difference between an employee and an independent contractor. However, it is important to note that no single indicator can determine if a person is a contractor or an employee. Each determination is based on the individual merits of the work arrangement in place. Courts always look at the totality of the relationship between the parties when determining the status of a person's employment
• There are some common indicators that may contribute to determining whether a person is an employee or independent contractor
• For more information, visit www.fairwork.gov.au

Enterprise Agreement

• On 1 July 2009, the various types of collective and individual workplace agreements that existed under the previous workplace relations system were replaced by a single type of agreement: an 'enterprise agreement'. This is simply an agreement between one or more national system employers and their employees, as specified in the agreement. Enterprise agreements are negotiated by the parties through collective bargaining in good faith, primarily at the enterprise level. Under the Fair Work Act 2009, an enterprise can mean any kind of business, activity, project or undertaking.
• Source: www.fairwork.gov.au

Employment Termination Payment (ETP)

• is a lump sum payment you make to an employee when they stop working for you. ETPs are taxed at different rates depending on your employee’s age and length of employment

Source: www.ato.gov.au



Workplace bullying

• repeated and unreasonable behaviour directed towards a worker or a group of workers that creates a risk to health and safety 
• Source: www.safeworkaustralia.gov.au

Fair Work Commission

• (previously called Fair Work Australia) is an independent government organisation regulate Australia’s workplace relations system
• is the independent national workplace relations tribunal responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation
• visit www.fwc.gov.au and www.fairwork.gov.au

Fair Work Ombudsman

• enforces compliance with the Fair Work Act, related legislation, awards and registered agreements
•  helps employers and employees by providing advice and education on pay rates and workplace conditions
• visit www.fwc.gov.au and www.fairwork.gov.au