Are your Payroll and HR Departments ready for the New Financial Year?

By: Mitrefinch Australia  29-Jun-2011
Keywords: human resource management, People Management, Workforce Management

As businesses around the country prepare for the end of the financial year, experts are warning organisations they need to be aware of the legislative changes that will come into effect on July 1.

Here are some of the key new legislative requirements businesses will face:

Minimum Wage Increase
The $19.40 per week increase on the minimum wage comes into effect from July 1. Employers need to ensure they meet all necessary pay requirements and update their payroll schedules to ensure employees are not underpaid.

Award Increases
The 3.4% increase in modern award wages will take effect from the first pay period to start on or after July 1. Revised modern awards which include the increased wages will be available on the FWA website.

Paid Parental Leave Scheme
While the Paid Parental Leave (PPL) Scheme was introduced at the beginning of this year, Government processing of the Scheme expires on June 30, so from July 1 employers will be responsible for processing the payments (18 weeks' pay at the national minimum wage to eligible employees who have or adopt a child from that date).

Employers are advised to ensure they have processes in place for dealing with the PPL scheme and to be aware that any existing parental schemes they have will also need to be paid.

Centrelink have put together a designed to assist employers and HR staff in preparing for their role in providing PPL to their eligible employees. See the Centrelink website for more information.

Reducing End of Financial Year Stress
Did you know that an effective can help reduce the workload associated with the transition to a new financial year?

Here's how:

• * Minimise risk by automating compliancewith Modern Awards and work rules
• * Ensure consistent application of pay rules, policies and workplace legislation
• * Cut Payroll Costs by reducing costly payroll errorsand inflation
• * Reduce Payroll Processing time by automating the transfer of hoursdirect to your payroll system
• * Safeguard you and your business with a complete Audit Trail