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Hi Welcome to the October Update

This month we begin a series on  good record-keeping

Key upcoming Dates

14/10 Recommended date to send Super to clearing house

21/10 September monthly BAS due

28/10 Last date for SGC contributions to be received by funds

31/10 Due  date for individual Tax returns

21/11 October monthly BAS and IAS due

25/11 Last date to lodge and Pay quarterly BAS if lodged with us

Record-Keeping Part 1

As a business owner, where do you start when it comes to business records?

Here are my 5 rules for Keeping records

1. You need to keep all records related to starting, running, changing, and selling or closing
your business that are relevant to your tax and super affairs. If your expenses relate to
business use or personal use, ensure you have clear documents to show the business
portion.

2. The relevant information in your records must not be changed (for example, by using
electronic sales suppression tools) and must be stored in a way that protects the information
from being changed or the record from being damaged. The ATO may ask you to show you
have appropriate safeguards in place. You also need to be able to reconstruct your original
data if your recordkeeping system changes over time.

3. Most records need to be kept for 5 years. Generally, the 5-year retention period for
each record starts from when you completed the transaction that the record relates to, but
there are some exceptions – to give a couple:
• fringe benefits tax (FBT) records – the 5 years starts from the date you lodge your fringe
benefit tax (FBT) return.
• records for super contributions for employees, the 5 years starts from the date of
the contribution
4. You need to be able to produce records if the ATO ask for them. If you store your data and records digitally, make sure they can be
retrieved, unlocked and decrypted if necessary.
5. Your records must be in English or able to be easily converted to English

If you would more information on how we can help ensure you keep good business records call on 02 9191 7307

1.Choosing the right award/agreement

I will talk about why hospitality owners need a payroll professional in this weekly series. Let’s start with a brief overview of the Australian awards system

If you employ in hospitality here are some of the awards you might need to be across :

Restaurant Industry Award

Hospitality Industry (General) Award

Fast Food Industry Award

Registered and Licensed Clubs Award

Each of these awards comes with a layer of complexity that can be difficult to navigate. Fair work can impose heavy fines for award non-compliance, knowing the right award is a key first step.

As a time-stressed cafe owner or restauranteur, you want to be able to rely on a professional to help ensure the right award or agreement covers your employees.

The hospitality team at Stellar Profits can help call us today on 02 9191 7307 or book an appointment here.

The government has made recent enhancements to the cash flow boost for employers. To know how much your rebate will be and when the attached spreadsheet can help

In the final week of August, the Full Federal Court handed down a watershed decision in the case of Workpac Pty Ltd. V Skene 2018] FCAFC 131 which may impact the large number of employers, who engage casual workers.

This case has created some hysteria among so called experts but its important to note the facts

Principles

The provision of casual loading or the description of a worker as ‘casual’ is not decisive as to a workers’ status as being casual. The question of whether an employment arrangement is casual in nature is a question of substance, not form. It must be assessed on a case-by-case against a range of indicia

Facts

Mr. Skene was engaged as a casual employee by Workpac Pty Ltd, a labour-hire company, to work on an assignment as a “fly in, fly out” truck driver at a coal mine operated by Rio Tinto in remote Queensland. Mr. Skene’s letter of offer confirmed his casual employment status with WorkPac, stating that it was an “Offer of Casual Employment” for an assignment of 3 months. A transitional industrial agreement also categorised him as a casual employee.

During his engagement, Mr. Skene worked a 7 days on / 7 days off continuous roster which was regular and predictable and set months in advance. The work was continuous (except for one period of 7 days’ unpaid leave arranged directly with Rio Tinto), his fly in/fly out arrangement and accommodation was fully paid for, he was expected to be available to Rio Tinto on an ongoing basis, his work did not fluctuate and his hours of work were regular and certain, which was reflected in Mr. Skene’s pay slips.

Mr. Skene’s rate of pay was a flat rate per-hour which was not expressed to be inclusive of casual loading and was not set off against any minimum entitlements payable under the NES or the workplace agreement. The assignment continued for just under two years..

Decision

The Full Court found that while Mr. Skene’s employment contract clearly stated that the engagement was “Casual Employment”, Mr. Skene was not a “casual employee” at law for the purposes of Annual Leave entitlements under the National Employment Standards contained in the Fair Work Act.

On an objective assessment, Mr. Skene’s work was ‘regular and predictable’, ‘continuous’, and it was ‘not subject to significant fluctuation.’ There was an expectation that Mr. Skene would be available, on an ongoing basis, to perform the duties required of him in accordance with his roster which was set months in advance. The fact that Mr. Skene himself considered that he was a casual employee, that he was paid by the hour and that his employment could be terminated on one hour’s notice, while indicative of casual employment was not determinative.

Accordingly, Mr. Skene was entitled to Annual Leave or be paid an amount in lieu of that leave entitlement. As WorkPac had failed to meet those entitlements, it was liable for compensation payable to Mr. Skene as well as for pecuniary penalties. The amount of compensation and level of penalty was remitted to the Federal Circuit Court for re-determination.

Why This Case Is Important

This case calls for a rethink on the classification of workers as casual by setting out a range of factors to consider in determining if a worker is indeed casual:

Whether the work is regular and predictable
Whether the employment is continuous
Whether the working hours are subject to significant fluctuation
Whether employment can be swiftly terminated.
Unlike casual employees, permanent part-time employees are entitled to paid Sick Leave, and Annual Leave. Even if a worker only works one day per week, while this may not be a significant amount of leave, it is still a liability that a business has not accounted for. Separate to failing to make provision for this liability, the failure is provide Annual Leave is a serious contravention of the Fair Work Act worthy of an imposition of a financial penalty.

If having weighed these factors there is still uncertainty surrounding a worker’s classification (i.e. casual versus permanent part-time), advice should be sought.

At Stellar Profits we assist employers in having good systems in place to ensure employees are paid correctly. Call us today on 02 9191 7307 to find out more