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Have you updated your payroll systems and processes for the new minimum wage?

• The adult minimum wage increased to $23.50 per hour on 1 April.
• The starting-out and training minimum wage rates have also gone up to $18.80 per hour.

Employers who pay their employees by the day, week, or fortnight need to make sure workers are paid at least the minimum wage appropriate to the basis on which they are paid. Additional hours worked in excess of an 8-hour day, or 40-hour week or 80-hour fortnight (as applicable) must be paid at least the minimum hourly rate.

Keep systematic records

Check the wages you pay employees comply with minimum requirements and be prepared to top up wages in a pay period to at least the level of the minimum wage. Even when you pay above minimum wage, you need to check calculations of the pay period.Record all wages and all agreements with employees about salary arrangements, deductions, and non-cash benefits. In addition to the detailed requirements of the wages and time record, there is also a legal requirement to have records in sufficient detail to show compliance with minimum entitlement provisions.

Managing costs

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 cost controls. When there are added stressors on cashflow, it can help to rethink your costs. This includes looking at your business to see if your systems (or lack of) are costing you unnecessarily.Contact us if you would like to discuss how to improve your cashflow.