Cashing Out Annual Leave

Are your staff asking to cash out annual leave? 

There are some important rules to remember before paying out annual leave.

Firstly, you must review the employee’s modern award to check that cashing out leave is explicitly allowed.

Most awards do allow for excess annual leave to be paid out, and we give you the general rules here – but you need to check the relevant award for special regulations before agreeing to cash out leave.

Common Rules for Cashing Out Leave

• The leave must be paid at the same rate as if the employee takes the leave. That means you must pay leave loading if it applies, and super is always payable on cashed out annual leave.
• The employee must have at least four weeks of leave left available after paying out any excess amount.
• You can’t pay out more than two weeks of leave per year.
• While leave accrues as usual when an employee takes leave, you don’t need to accrue leave on cashed out leave.
• You need to have a written agreement with the employee, stating the number of hours being paid, the total amount and when you will pay it.
• Remember to check the employee’s award first and keep all records and calculations!

You Can Direct Employees to Take Excess Leave

You can't force an employee to cash out leave, but you can ask an employee to take leave in some circumstances. If you have employees accruing a lot of leave, check the award for guidance. For example, some awards allow an employer to direct an employee to take one week or more of leave if they have more than eight weeks accrued, give at least six weeks’ notice, and leave at least six weeks of leave available.

Need Help?

Remember, annual leave is paid out when an employee leaves your business, so it’s good to keep an eye on how much is owing and not let too much accrue.

Also, employees should be taking leave regularly for their health and wellbeing.

If you need help, talk to us, and we can review your payroll, leave accruals and modern awards to help manage employees’ annual leave.

Managing projects in a remote team

We’re living in a world where remote and hybrid working are now the norm.

Driven by lockdowns and the pandemic, businesses have been forced to adopt a ‘working from home’ approach. And this ability to work remotely has driven productivity and efficiency for some companies but can create its own challenges.

Designing your workflows for remote working

When a whole team, or even a percentage of a team, are no longer sitting in the same office space, there are some very specific considerations to bear in mind. How do they access the systems they need? Where is all the company and customer data stored? How can people collaborate? What’s the best way to communicate?

If you’re going to make it easy to manage a project with a remote or hybrid team, you absolutely need to think through these questions and come up with some practical answers.

For example:

Video-based meetings and project kick-offs

The obvious problem of not being in the same room is that the project team can’t see or hear each other. 

And over the course of the pandemic, we’ve seen video meetings and platforms like Zoom and Microsoft Teams come into their own. Having your kick-off meeting and regular team catch-ups via video calls helps everyone to feel involved, and helps to create more of a ‘team spirit’ between a group of people who may be hundreds, or even thousands, of miles apart.

Capturing actions and briefs

During meetings, you need good ways of taking down notes, capturing actions or summarising what’s been discussed with the client or the team. Using a cloud-based document system, like Microsoft 365, Google Docs or Evernote allows you to capture these ideas as rough notes. Or you could use an AI transcription tool, like Otter.ai, to transcribe the audio from the meeting as it happens and provide you with a full written breakdown of the call.

Job management and tracking tools

Once the project is underway, it’s important to monitor progress, record which tasks have been completed and stay in control of a disparate group of people all working in different places.

There are many project management tools for tracking the progress of a project and keeping everyone on top of things. When these tools are cloud-based, everyone has access 24/7 from any internet-enabled location, so that makes it far easier for everyone to be kept in the loop – and for people managers to see how each person is tracking.

We specialise in this space to support the implementation of these tools, so talk to us about your options. 

Collaborating together as a team

Working together from a distance is another hurdle for a dispersed team to overcome. But with cloud-based collaboration tools, like Monday, Slack or Teams, you can quickly create an online space for the team to share documents, have online chats, upload different document versions and generally boost the collaborative process.

The easier you make it to communicate and share files/info, the fewer challenges you’ll face as the project develops.

Integrating project finances with your accounts

Whatever the project, there are going to be certain costs, expenses and budgetary considerations to cope with. And staying in control of that with a team of remote workers can be a challenge – both for the project manager and the company’s finance team.

The answer is to use a project management tool that integrates with your main cloud accounting software. Many of the top project management and invoicing solutions can connect directly to platforms such as Xero, QuickBooks, MYOB or Sage.

Apps like DiviPay or Pleo also provide ways to manage your remote team expenses when employees are making ad hoc payments, racking up project expenses or have control over their own budgets etc.

Again, we specialise in this space to support the implementation of these tools, so talk to us about your options. 

As the benefits and flexibility of remote working become more widely felt, we’re likely to see even more projects being run remotely – with employees no longer clustered in the same office 5 days per week. So, if you want to keep your competitive advantage, you need to be ready.

The benefits of engaging a BAS Agent for your business

Do you spend too much time on your accounts? It could be time to engage the services of a BAS agent to help you with bookkeeping and ATO reporting.

Working with a BAS agent can benefit your business more than you may realise! We’d love to talk about how we can help save you time and money.

Many business owners starting out try to save on costs by doing their own bookkeeping, but this is one of the first tasks you can outsource to give yourself time and save money. If you can work on your business to generate more sales, why spend that valuable time on administration and accounts management?

A BAS agent is a registered tax professional who can provide a greater variety of services than a bookkeeper. BAS agents are trained in the complexities of GST and other laws – meaning you don't have to become an expert in areas that are not your passion or skillset.

What a BAS Agent can do for your business

Once the agent has become familiar with your business operations, they can not only take care of the transactional recording, financial reporting and compliance requirements, but they can assist you in better understanding your day-to-day business performance. A

BAS agent can become a trusted member of your management team along with your tax agent, providing accurate and timely financial advice and insights to help you make better business decisions and plan for long-term success.

BAS Services

A BAS agent can ascertain and advise the business owner on correct liability amounts and submit statutory reports to the ATO and other agencies on behalf of the owner.

BAS provisions include determining GST liabilities, PAYG withholding obligations, employee superannuation contributions, and submitting taxable payments reports and Single Touch Payroll.

What makes a great BAS Agent?

Professional BAS agents keep up with ongoing education and development, use industry best practices, take the time to ask questions and understand your organisation, and do their best to assist and advise your business.

They will work proactively to support the business by ensuring the integrity of the accounts and providing accurate financial reports. They will be able to discuss your business’s financial health, assess operations and systems, and give you valuable advice.

If you think it’s time to engage a professional BAS agent, get in touch and let’s talk about how this can benefit your business and save you time and money.

Cyber Security - is your business focused enough on it?

We live in a digital world where our company’s data and (crucially) our customers’ data is under constant attack. Hackers are always looking for new ways to break into your systems and databases – and this has resulted in many significant data breaches in recent years.

When your security is breached, and your data is compromised, this isn’t just an IT issue, however. It’s a breach of trust between you, your customers and your suppliers – one that can be hugely damaging for your brand reputation and consumer’s perception of the company.

So, why are so few companies taking cyber security seriously? And what can you do to enhance your cybersecurity and protect your valuable data?

In the 21st century, your data = your business

It’s the customer information in your CRM system, the supplier details in your invoicing system and the financial data in your accounting software. It’s your bank account details, your confidential client information and your company’s secret intellectual property or hard-won R&D findings.

If you lose your data, you damage the business too. So protecting the safety and security of your data and systems has to be a top priority for any business owner.

Tips to boost your cyber security

Make cyber security a company-wide concern

If a data breach occurs, there’s no use blaming the IT department after the fact. Cyber security has to be a concern for the whole business and something where you have clear advice, processes and training in place for. The better your people are prepared for protecting the company’s valuable data, the less chance there will be of a security error or accidental data breach.

Keep devices and computing hardware secure

Where your employees are using laptops and work mobile devices, it’s vital that they keep this hardware safe. Don’t leave computers unattended in laptop bags in a coffee shop or bar, and don’t leave your phone unsupervised on a hot desk. Offer secure lockers and desk drawers where laptops and devices can be secured and always think about the security implications of leaving your hardware anywhere other than in the office.

Use a secure network connection

When connecting to work applications, databases and shared folders, always use the company network or an approved virtual private network (VPN). By using a secure network connection, you greatly reduce the chances of your data being intercepted and stolen, with VPNs allowing employees to log in securely when off-site or working at a client’s premises.

Save important data in the right place

You should have clear protocols regarding what kinds of data can be saved, and where this information should be stored. If employees are storing spreadsheets full of confidential client information on their laptop hard drives, you are only one lost laptop away from a security breach. Set up clear guidelines on which drives and folders to use, and make sure only the right people have access to any confidential folders and content.

Use proper authentication and encryption

Use two-factor authentication or even multi-factor authentication for access to all your cloud and SaaS tools. And make sure you have proper data encryption of any confidential information that’s shared. By putting the best possible security steps in place, you greatly reduce the risk of a slip-up.

Factor in the added security threat of WFH 

With so many employees now working from home (WFH), there are extra threats to factor in. Good cyber security at home means using a secure VPN, keeping laptops safely stored, always using the latest versions of applications and not sharing passwords with family or flatmates etc.

Log all security breaches 

If the worst-case scenario does happen, make sure to log every single security or data breach – and be transparent about what’s happened when communicating with customers, suppliers or employees who may have been affected. The sooner all your stakeholders are aware of the issue, the sooner you can work to resolve the problem and limit the potential damage.

Speak to IT security experts and protect your data

Keeping your data safe and secure is now a foundational need for any business. If you want to reduce your security worries, it’s sensible to speak to a cyber security expert. They will be able to review your current systems, networks and security practices and advise you on the key actions that are needed to tighten up your security.

Can you require employees to be vaccinated in Australia?

Vaccination is an effective way to help protect against COVID-19. But as an employer, can you require your team to be vaccinated?

While in some situations, you may be able to require employees to get vaccinated, another approach is to openly support vaccination through your workplace.

Open support for vaccination could mean:

• Giving your employees paid time off for their vaccination appointments.
• Making reliable vaccination information available on shared portals, like your intranet. The Department of Health has useful information on how they work, safety and side effects, and details about each vaccine.
• Planning for the eventuality that some employees will not be vaccinated, and considering alternative arrangements, like work from home.

It’s important to remember that employees will have access to vaccination at different times and adjust any communications accordingly.

Employers must comply with work health and safety law and may only require employees to be vaccinated under certain circumstances.

If you are thinking about introducing a mandatory COVID-19 vaccination policy for your business, you should seek legal advice before doing so.

The exploration process should also include understanding your consultation obligations through reviewing any applicable award, agreement, employment contract or existing workplace policy.

If you do introduce a mandatory vaccination policy, you should cover travel costs and paid time off for employees to attend vaccination appointments that are during work hours.

You should be aware that some employees may need to use paid sick leave to recover after being vaccinated.

For employees that have used all their sick leave, you may wish to offer them the option to use annual leave or another leave entitlement. You may also wish to give casual staff members the option to adjust their working schedule ahead of time.

For more information on workplace rights and your obligations, visit fairwork.gov.au. And for additional information on vaccination and managing COVID-19 risk in your workplace visit SafeWork Australia.

Employee Super changes from 1 November

From 1st November, if you have any new employees start work with you and they don’t nominate a specific superannuation fund, you may need to request their ‘stapled super fund’ details from the ATO.

We can help you with this.

Choosing a super fund

Most employees are eligible to choose a super fund when starting a new job. However, sometimes an employee might not make a choice.

For example, they might omit to complete the form, or they might not know the details of their existing fund or whether they actually have one.

This situation could leave the employer at risk of not meeting their superannuation guarantee obligations and incurring penalties.

Employers can request an employee’s ‘stapled fund’ (a fund linked to an individual) details from the ATO, starting from 1st November 2021.

What employers need to do from 1st November 

There are 3 steps.

1. Offer eligible employees and contractors a choice

When a new employee starts work, they can either specify a fund or decide to go with your default fund. Either way, you have an obligation to offer them a choice and pay super contributions into their chosen fund.

2. If no choice is taken, request details of stapled fund from the ATO

If the employee doesn’t make a choice. You can lodge a request for details of their stapled fund through ATO online services. You will need to provide the employee’s TFN and personal details.

3. Pay super contributions into the stapled fund

Where the ATO provides details of a stapled fund you must pay super guarantee contributions into it.

Essentially, you must take all steps you can to allow employees choice of super fund. But in cases where all avenues are exhausted you can use your default fund.

As your BAS Agent, we can lodge ATO requests for stapled funds on your behalf, including bulk requests where there are 100 or more new employees.

Get in touch. We’re here to help!

ATO Line of credit ending

As new reporting powers come into play, businesses are being warned against using the ATO as an alternative line of credit.

Debt Reporting Powers

In 2019, the ATO was afforded new debt reporting powers. While this took a backseat to the Covid-19 pandemic, the ATO is now cracking down on outstanding tax debt. 

Businesses without a payment plan, that are more than 90 days in arrears, and who owe more than $100,000 in tax are more likely to be reported to credit agencies by the ATO.

Impact on credit rating

In the past, business owners have sometimes used the ATO like a ‘line of credit’ by not paying their ATO commitments on time.

Taking this road is much more likely to have an adverse impact on your credit ratings and credit insurance limits. This, in turn, makes it more difficult to maintain or extend credit terms with suppliers.

Therefore, it's important to maintain a high level of communication with your creditors. 

Staying on the front foot

As business owners, if you owe tax, it's vital that you stay on the front foot with this ATO crackdown. We suggest you seek the advice of your BAS agent.

First Class Accounts Ovens and Murray, as your BAS Agent, are able to advocate on your behalf to deal with the ATO.

As Busy01 Consulting, we can also to assist with:

• preparing a business plan
• management advice
• cash-flow planning and projection
• systems development
• business expansion
• budget development
• trading-structure planning.

Get in touch to discuss which options are best for your business. 

Direct Debits and Online Payments

Do You Have Direct Debits and Online Payments Set Up for Your Business?

Making it easy for your customers to pay you is vital to business success. Getting direct debits and alternative payment methods linked to your business is so easy these days there's no excuse not to give your customers multiple ways of making payment.

Many service-based businesses choose direct debit arrangements with their clients to avoid late payment. If you’re often chasing overdue payments, consider implementing direct debit arrangements to reduce your administration time.

If you’re already using online accounting software, check the add-on solutions and choose one that integrates with your accounts. This means that the payment platform information feeds directly into your accounting software to be easily matched to customer transactions.

Make it Easy

You probably already have bank transfer information set up, but adding several other methods such as PayPal, debit cards, and credit cards allows customers to choose the method most convenient for them at the time. Many customers appreciate the automation and simplicity of direct debits.

Make sure your payment terms and conditions are clear on your website and invoices and don't forget to include all your chosen payment methods for customers!

Worried About Costly Fees?

You have the option to choose whether you will absorb the cost of the payment gateway processing fees or whether you will add the cost to your invoice and charge the clients extra. Your accounting software will then allocate the funds accordingly to invoice payment and fees received.

Better Transaction Recording

When you integrate direct debits and online payment methods with your accounting system, you dramatically reduce errors in recording customer payments – which means less time spent on your accounts!

Not Sure Where to Start?

If you’d like to make it easier for customers to pay you, talk to us about which solutions are best for your business. We can discuss which platforms have the best and most secure integrations with the accounting software you use.

We’ll help streamline your payment systems.

Could a 4-day week be a good fit for your team?

The pandemic has acted as an impetus for reflection, with many workers and business people reassessing the hours they work and the priority that work has in their lives.

A survey from Slack showed that 72% of respondents would prefer a hybrid approach to work – i.e. a mix of remote and office work. But there’s also a growing belief that we should be working fewer hours too and aiming for a ‘4-day week’. This would mean less time in the workplace and more time with our friends and families, with a greater level of underlying happiness as a result.

But do your people want to work fewer hours? Is the company ready to cope with a reduced staff on hand to get the job done? And what is the overall impact of working a shorter week?

The advantages of a 4-day week

The suggestion of a 4-day week is something that's been around for a while, but increasingly there's a ground-swell of support for the idea of working shorter hours and achieving a better work/life balance as a result.

In Iceland, 2,500 workers (1% of the total Icelandic population) took part in a trial of the 4-day week between 2015-2019. Most workers moved from a 40-hour week to a 35 or 36-hour week, giving them one extra day to focus on things outside of the workplace. The trail was a big success and has resulted in 86% of Iceland’s workforce now working reduced hours.

As a business owner, you’re no doubt already thinking ‘But how can my business still function if my employees are working less hours and are being less productive?’. But the interesting outcome was that productivity wasn’t negatively affected by this move to reduced hours.

So, could a 4-day week actually be a good fit for your team?

Your employees are just as productive

A 4-day week was trialled by New Zealand company Perpetual Guardian and the results were surprising. After spending two months testing a 20% shorter week, they found that their employees were ‘happier, more focused, and producing the same amount of work’. The Icelandic trial found the same result, that workers were equally as productive, with no drops in output, when working for only 4 days in the week.

Your team still earns the same money

One potential worry for your employees is a drop in pay if they are working less hours. But under a 4-day work scheme, you continue to pay your team the same wages or salaries. So, although your employees are working less hours, there’s no drop in their income and no resulting money worries.

Your team is happier and more engaged 

Results of 4-day week trials globally have shown that employees on reduced hours are happier, more engaged and more energised for their work. So, rather than pushing your team to work a 40+ hour week and risking fatigue, burnout and disengagement, you ease off on the throttle. This give your employees a less pressurised work environment and a better level of happiness. And, as we know, a happy workforce is also a productive workforce.

A more sustainable business model

With your people spending less time in the office, factory or workspace, your business will be using fewer resources – and having less of an impact on the planet. Your utility bills will reduce, you’ll need fewer office supplies and your people won’t be commuting as frequently – all of which is great for your carbon footprint and the overall sustainability of your business.

Talk to us about the financial impact of a 4-day week.

Adopting a 4-day week does have a range of different benefits for your employees. And creating a happy, productive and engaged workforce is always a good thing to achieve.

If you’re concerned about the financial impact of a 4-day week, come and talk to us. We can look at your sales and revenue figures, alongside your staff utilisation numbers, to show you how your margins can remain the same (or even higher) by adopting a reduced working week.