Employer Obligations - Paying Wages

Employees can be classified as Full Time, Part Time or Casuals.

Full Time Employees work ordinary hours totalling an average of 38 hours per week. Full Time Employees are entitled to Annual Leave, Sick Leave and get paid for Public Holidays.

Part Time Employees work less than the 38 hour week. They are entitled to Annual Leave and Sick Leave on a Pro Rata Basis. If they normally work the day a Public Holiday falls on they will be entitled to be paid for the normal hours that they would have worked on that day.

Casual Employees are paid at an hourly rate for the time they have worked. They are not entitled to Annual or Sick Leave and don't get paid if they don't work on a public holiday. They are paid at a higher rate which includes a loading for compensation of not accruing leave entitlements.

Please see relevant awards for more detailed information on Employer Obligations and guidelines for above classifications.

How to Pay Wages

You can pay employees by cash, cheque or direct deposit. Direct Deposit is the most popular method of payment, especially with Internet Banking which most home businesses would be using.

By Law in Australia, you must keep Employee records for 7 Years. You can keep Employee records either manually in a wages book, ian an Excel Spreadsheet or use a computerised payroll program such as MYOB.

You must keep the following information:
• Employer Name
• Employee Name
• Date Employee Commenced Working
• Classification (FTime,Ptime, casual)
• Rate of Pay (Hourly or salary)
• Any Allowances, Loadings etc
• Overtime worked - see award for rates and rules
• If Employee is paid Hourly- breakdown of hours worked per day
• Gross Wages
• Tax Withheld

• If you are manually calculating wages, best to get some tax scales from your local newsagent or Post Office. The ATO has some calculators but you must enter various information for it to calculate the tax.

  **Income Tax Witholding rates and thresholds will change from July 1st 2009. New Tax Tables are now available from the ATO Website

  www.ato.gov.au/taxtables

  
  
• Net Pay
• Superannuation @ 9%
• Any annual leave and sick leave taken and accrued.
(Annual leave accrued for a normal 38hr week is 2.92 hours.)

If any employee resigns or is terminated, the final day must be recorded, and the way the employee left employment must be recorded.

Payslips

Payslips must include:

Employer Details
Name of Employee
Pay date and period pay covers
Gross Wage, Tax Withheld, and Net Pay
Base Hourly Rate, Salary, allowances and any other entitlements
Number of Hours worked
Superannuation to be paid to Super Fund
Annual and Sick Leave Accrued to date (Optional)