New IR Laws change the game in Payroll.
The requirements of payroll compliance go far beyond just payroll and incorporate processes from engagement, rostering, timesheet authorisation and acceptance and full payroll calculation from the approved timesheet.
What is the most important change we must make as we navigate the recent IR changes?
Understanding that the IR landscape has changed payroll, we cannot ignore it.
The payroll cost implications of not addressing this change will result in substantial business cost increases and possible regulatory breaches. The new IR laws require each employee’s contract to include their standard days and hours of work.
- The payroll landscape starts with the employee contract that must be included in each employee’s standard work hours, even for part-time and salaried employees.
- These days and hours can only be changed by documented agreement of the employee, which, if not agreed to, can create penalty hours payments for the times outside of these hours.
- Employee rostered dates and time changes also need documented employee agreement of the changes to avoid unnecessary penalty rate payments.
- Each employee is to have a documented approved and accepted timesheet as evidence for any underpayment investigations.
Dynamic acceptances of times to work.
Dynamic employee acceptance of times worked.
As seen above, the payroll commences with the employee file. Then it flows through the roster, which can be validated by the timekeeping to the timesheet from which payroll should be interpreted without off-system manual calculation and data entry. These processes are best undertaken by the one system with acceptances throughout the flow from the roster to payroll. #ThatsInzenius #Payroll