HOW DO I SET UP PAY­ROLL?

Collective Hub - - HOW TO -

WITH BOOK­KEEPER JEN SWENSON, CEO OF GOLD COAST-BASED THE ENTHUSIA GROUP, WHO HAS AL­MOST 30 YEARS’ EX­PE­RI­ENCE IN AC­COUNT­ING AND MEN­TOR­ING FOR SMALL BUSI­NESSES. DRAW UP A CON­TRACT

Once a suit­able can­di­date has been found, it’s good to pro­vide a let­ter of of­fer set­ting out the con­di­tions of em­ploy­ment as well as an em­ploy­ment con­tract, where an in­dus­try award is not ap­pli­ca­ble or avail­able. This con­tract should be signed be­fore em­ploy­ment com­mences.

PRO­VIDE FORMS

The em­ployer should pro­vide a Tax File Num­ber dec­la­ra­tion, a su­per­an­nu­a­tion stan­dard choice form and an em­ployee in­for­ma­tion sheet and these should be re­turned to the em­ployer on or be­fore com­mence­ment of em­ploy­ment. The Tax File Num­ber dec­la­ra­tion con­tains in­for­ma­tion that re­lates to the amount of tax to be de­ducted; the su­per­an­nu­a­tion choice form con­tains the de­tails of the em­ployee’s su­per­an­nu­a­tion fund, as well as the USI (Unique Su­per­an­nu­a­tion Iden­ti­fier) for the fund and the mem­ber num­ber; and the em­ployee in­for­ma­tion sheet is a tem­plate cre­ated within the busi­ness for the pur­pose of em­ploy­ees pro­vid­ing con­tact de­tails, bank de­tails and de­tails of next of kin in the case of an emer­gency.

OR­GAN­ISE SU­PER­AN­NU­A­TION

With the in­tro­duc­tion of Su­perStream by the ATO, most ac­count­ing pro­grams have their own com­pli­ant method of con­tribut­ing su­per. Where an em­ployee doesn’t have a su­per fund, the em­ployer should des­ig­nate a su­per­an­nu­a­tion fund as their de­fault su­per fund.

COR­RECT ER­RORS

When an er­ror has been made in pay­roll, the em­ployee needs to be no­ti­fied in writ­ing, in­clud­ing how the er­ror has oc­curred and a course of ac­tion to rec­tify it (notes should also be made in the em­ployee file). Where there is an er­ror, it should be rec­ti­fied by cre­at­ing an un­sched­uled pay run to ad­just the er­rors. In the event of an over­pay­ment to an em­ployee, they must pay the money back to the em­ployer ei­ther in a lump sum or, where the over­pay­ment has been over a length of time, it can be de­ducted over sub­se­quent pay pe­ri­ods to bring it back into line. Where there is an un­der­pay­ment, the dif­fer­ence is to be paid to the em­ployee.

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