Payroll information for 2019
The new financial year is on our doorstep and we want you to be in good shape looking forward! From 1st July 2018 there will be some changes to payroll, here are some key changes our staff would advise are likely to affect you.
- Tax rates are changing. New tax tables are now available at gov.au/taxtables
If you use accounting software, contact your software provider for any software updates.
- When employing new employees you are required to provide to them:
- A letter of engagement & a Fair Work Information Statement (both can be accessed via https://www.fairwork.gov.au/),
- A Tax File Number Declaration can be accessed from ato.gov.au
- Superannuation standard choice form https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/SUPER17983Superannuation_standard_choice_form.pdf
- Superannuation is still 9.5%
- Single touch payroll – If you currently record and report your payroll obligations manually or with software that is not online you will need to upgrade to online accounting software with Single Touch Payroll facilities. For employers with 20 or more employees these changes will take effect from the 1st July 2018 and for employers with 19 or less these changes will take effect from the 1st July 2019.
- Contractors paid mainly for their labour are employees for superannuation guarantee purposes. This is the case even if the contractor quotes an Australian Business Number (ABN).
You must make super contributions for these individuals if you pay them:
- under a verbal or written contract that is wholly or principally for their labour – that is, more than half the dollar value of the contract is for their labour
- for their personal labour and skills – which may include physical labour, mental effort or artistic effort – and not to achieve a result
- to perform the contract work personally – that is, they must not delegate.
If you make a contract with someone other than the person who’ll actually provide the labour – for example, with a company, trust or a partnership – you don’t pay that person super.
- use the employee/contractor decision tool to work out if a contractor is an employee for super purposes
- use the superannuation guarantee eligibility decision tool to work out if they’re entitled to super guarantee contributions.
- Return to Work SA (Workcover) threshold is $ 12,809.00 for 2019, therefore once your Total Gross Employee payments PLUS Superannuation exceed this figure, you must be registered with RTWSA, you can do this or find out more information via https://www.rtwsa.com
- National Employment Standards provide minimum standards of employment entitlements that employees have. It covers maximum hours worked, leave entitlements, etc. Please refer to https://www.fairwork.gov.au/employee-entitlements/national-employment-standards
- Employee award rates are governed by the Fair Work Ombudsman and are updated regularly. The Fair Work Ombudsman provides information for employers regarding pay slip and record keeping requirements. Employers can call 13 13 94 or access the website at https://www.fairwork.gov.au/
- Fair Work Australia offer free short 20 to 40 minute online training courses on Record Keeping, Pay Slips and various other issues at: https://www.fairwork.gov.au/how-we-will-help/online-training
- Work Health & Safety is an important responsibility of all employers. Information regarding this can be accessed via Safework SA help centre on 1300 365 255 or their website http://www.safework.sa.gov.au/
- Old accounting programs are being phased out, we are finding with many programs if you have an older version it will no longer be compatible with our computer system. If you are thinking about upgrading or changing systems please contact our office for advice and possible discounts on offer.
As the information is designed to cater for an array of clients, businesses and situations, the information is of a general nature only. If anything is of interest to you please do not hesitate to contact our office for further information.
Thank you and enjoy!