Getting the right advice on employer obligations

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So often we are asked questions around compliance for employers and employees in the Building & Construction Industry which goes well beyond the scope of accounting and taxation advice.

Whilst we are not employment experts and explicitly advise that this constitutes general advice we have put together a short summary of some of the key matters to be aware of if this impacts you or your business.

For employees (and subcontractors who would be seen as deemed employees – refer to the ATO Employee/Contractor Tool, if you are uncertain about the correct classification) the employer is required to pay superannuation at the current rate of 9.25% on Ordinary Times Earnings. Additionally, the employer should deduct PAYG Withholding from the pay at the rate provided by the ATO Tax Tables and declare the payments as Rateable Remuneration when reporting to WorkCover providers. Generally, this will be the case regardless of whether the worker is permanent or casual or paid an hourly rate as opposed to a fixed annual salary. Of course if you are uncertain about a specific case you should contact your Workcover agent for specific advice.

In relation to Coinvest and Incolink:

– Generally the employer is required to make long service leave contributions to Coinvest for all employees and deemed employees (except apprentices) at the rate of 2.7% of the ordinary wage of the employee. This is paid every 3 months based on the Workers’ Days & Hours Form. You can read more info on this here.

– Generally Incolink contributions are required to be paid by the employer if work is based on either of the following fund types. If none of these categories are applicable then there is no requirement to register & thus contribute to Incolink for the employees and deemed employees. If it is applicable then the appropriate forms will be required for registration which can be found here:

o Fund 1 – for companies working in the commercial building and construction industry in Victoria or companies who have an EBA with the CFMEU and CEPU.

o Fund 2 – for companies working in the Metal, Labour Hire and Engineering trades or companies in Victoria who have an EBA with the AMWU and AWU would be registered under Fund 2.

We remind you that this is general advice only and is provided for general awareness. If you would like specific information in relation to employer obligations, including Fair Work requirements and the like, we can put you in contact with a specialist company who are already working with a number of our clients.

As an employer it’s critical that you have the correct information and advisors, so if you would like to find out more about specialist advice please contact lynda@mcmahonosborne.com.au at our office.

 

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