So far this week, we have identified three things that employers need to check as at 1 January 2014:
1. Increase of Protected Earnings Amount (PEA) for child support deductions to $339.23 per week. PEA is the amount of an employee's salary or wage that is exempt from Child Support deductions. This is basically the amount that must be left after tax and Child Support deductions. And since the cost of living increases, this amount is indexed every year and new amounts take effect every 1 January. Note that this may also apply to contractors. Below are some calculations depending on your payroll frequency: 1. Daily $339.23 ÷ 7 days = $ 48.4614 2. Weekly $48.4614 x 7 days = $339.23 3. Fortnightly $48.4614 x 14 days = $678.46 5. Monthly $48.4614 x 30.4375* = $1,475.04 *Note: a year is equal to 365.25 days (allowing for the leap year), 30.4375 days in a month is equal to 365.25 divided by 12. Figures are rounded where applicable. When making the full Child Support deduction that would take the employee's net pay under the PEA amount, the amount that you can deduct is only up to the amount that will leave the PEA. You do not make a deduction of Child Support that leaves an employee or with a take home pay (after tax and Child Support deductions) of less than the PEA. That is why it is called Protected Earnings Amount. For more information visit: http://www.humanservices.gov.au 2. From 1 January 2014, employers must make super contributions to a fund that offers MySuper product. MySuper is a new super product that will replace existing default products. Employers generally have a default fund, where they make super guarantee payments for employees who have not selected a preferred fund. In 2013, super funds have been obtaining authorisation for the new MySuper products. Funds are advising employers of arrangements for paying their super guarantee contributions. Basically you need to check your existing default fund arrangements and if they have advised you of their MySuper arrangements. You can also visit the ATO website for more information about superannuation for employers: Guide to superannuation for employers. Source: www.ato.gov.au 3. Some of the changes to Fair Work Act include: - arbitration available for dismissal disputes at the Fair Work Commission - changes to right of entry - new anti-bullying measures - new consultation terms when changing regular rosters and working hours - new timeframes for unlawful termination applications - updated superannuation terms For more information check out Fair Work on www.fairwork.gov.au Comments are closed.
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January 2016
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