There are some important changes to payroll this new financial year, including an increase in superannuation guarantee. We’ve included all of the changes and reminders you need to be aware of in this blog to help keep you up to date.
Superannuation Increase from 1 July 2021
The superannuation guarantee statutory rate increases to 10% from 1 July.
Depending on your payroll software, you may have to manually update your pay items to reflect the increase in super guarantee. Only some standard pay items in selected payroll software will automatically capture these changes and any personalised pay items will need to be updated manually.
It is important to review all pay items, when you process your first pay run in July, please make sure that the super guarantee rate is correct for each item.
Single Touch Payroll Finalisation
You need to make your finalisation declaration by 14 July 2021. The ATO recognises the impacts of COVID-19 on the Australian community, if you need additional time, you can complete your STP finalisation up until 31 July.
For an employer with a mixture of both closely held payees and arms-length employees, the due date for end-of-year STP finalisation for closely held payees is 30 September 2021. All other employees are due 14 July 2021.
Small employers (fewer than 19 employees) that only pay closely held payees have until the payee’s income tax return due date.
The sooner you complete your finalisation, the sooner your employees can lodge their tax return and getting it right the first time means your employees will have accurate information to lodge.
Please refer to the following links to find out how to finalise your Single Touch Payroll data in your accounting software:
Finalising in MYOB AccountRight
Minimum Wage Increase – 1 July 2021
The national minimum wage increases on 1 July by 2.5% to $20.33 per hour (or $772.60 per week). The minimum wage increase applies to employees if an award or national minimum wage defines their pay rate.
This year, the Fair Work Ombudsman (FWO) has implemented minimum wage increases to awards in a staggered approach. Most awards increase on 1 July; however, the Retail Award will increase from 1 September, and a few awards will increase on 1 November.
For full details of award increases, visit Fair Work Ombudsman Annual Wage Review 2021.
Changes to Casual Employment
The Fair Work Act has been amended to include a Casual Employment Information Statement (CEIS), a formal definition of casual employment, and a pathway for casual employees to become permanent employees.
Employers must now provide the CEIS to all casual workers upon starting with the employer, along with the National Employment Standards and Fair Work Information Statement. Visit the FWO Casual Employment Information Statement webpage for details and to download the form for your employees.
For more information about casual employment definition and the options for becoming a permanent employee, visit FWO Changes to Casual Employment to check if you have to offer permanent positions to your employees.
We’re here to help
We can assist you in navigating these changes, finalising your Single Touch payroll on time, as well as review your accounting software to make sure it’s set up correctly for the new financial year.
If you would like assistance with any of the above items, please get in contact with us on 03 6231 3448.