Monthly tax tip:
Payroll after a holiday period can be painful for some employers but you will want to ensure that everything is listed correctly, and employees are paid accordingly. All part-time and full-time employees should be paid their ordinary hours for any public holiday that falls on a usual working day – even if annual leave is being taken over that period. However, if employees are working on a public holiday, then please check their relevant award to correctly pay them at public holiday rates.
If the holiday period requires more staff hours due to increase in customer sales then you could discuss the option of employees accruing “time off in lieu” instead of being paid at overtime rates. This could allow staff to take the accrued leave off in January when everything calms down and work is slow again. As the employer, you cannot force an employee to be paid under this arrangement but you can put together an agreement in writing for your employee to sign if they agree to it.
If employees are being paid a Christmas or end of year bonus then this can be claimed if it has been correctly listed in the payroll system and tax has been applied. It’s also important to note that an employer cannot just give a “cash” bonus that isn’t taxed, all bonus payments are required to be taxed and listed on employees payslips. Should you have any questions or need any assistance finalising payroll from the holiday period, then please contact our office.
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