How you can avoid underpaying your Employees
Underpaying of employees is consistently a hot topic in the media these days. Unfortunately it is not just the small players subject to underpaying, many big brand names are leading the way.
If the big players can’t get it right, how are the smaller businesses able to do the right thing?
The employment landscape in Australia is known to be one of the most complex in the world.
There are 121 Modern Awards that many businesses across Australia work under, that sets out the minimum rate of pay and how penalties and allowances are applied. On top of this you have National Minimum Wage employees, Award Free employees, Enterprise Agreements and Individuals Employment Contracts.
There are many complexities that go into understanding how to pay your employees correctly.
It is recommended that as an employer, you undertake a payroll audit annually to identify if any under payments exist.
Depending on how an employee is engaged, will assist with conducting these audits. Is an Award applicable? Is there an Enterprise Agreement or an Individual Employment Contract with a set off clause?
As you can see, there are several factors that go into an employees pay.
Undertaking an annual audit by reviewing the appropriate documents and agreements is the best place to start. Followed by conducting a BOOTS Assessment. This is what is known as a “better off overall test” to ensure no underpayment is present. This assessment compares minimum wage you are required to pay, against what you are currently paying.
These assessments can be complex with many factors being taken into consideration, so it is important that you get it right.
Haven’t conducted a payroll audit in some time, unsure if you are paying correctly? Contact Now Actually to discuss how we can complete this audit for you.