Have you updated your payroll systems and processes for the new minimum wage?
- The adult minimum wage increased from $20.00 to $21.20 per hour on 1 April 2022.
- The starting-out and training minimum wage rates have also increased - from $16.00 to $16.96 per hour.
Employers who pay their employees by the day, week, or fortnight, or pay them an annual salary, need to make sure employees are paid at least the minimum wage appropriate to the basis on which they are paid. Additional time must be paid at least $21.20 per hour.
Keep Systematic Records
Make sure you keep records of hours worked, wages paid, and all holiday and sick leave and make sure your records have enough detail to show that you are complying with requirements such as minimum wage. If you have agreements with employees about accommodation and other benefits, make sure these are documented. Your wages records should document wages payable before any deduction is made for the agreed value of accommodation or of goods or services.
Cashflow is a perennial concern for businesses and the latest changes may be a timely prompt to take another look at your cashflow plan and your cost controls. When there are added stressors on cashflow, it can help to rethink your costs. This involves more than just keeping an eye on outgoings. It’s about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily.