In a recent decision by the Federal Circuit Court, a payroll officer has been personally fined $7,000 for his involvement in $18,491 of underpayments owed to two workers.
The workers were employed by fast food business operating a number of retail premises in Brisbane. The underpayments led to fines being issued to:
- the employer company – $116,250;
- the director of the employer company – $20,000; and
- the payroll officer – $7,000.
Recent litigation shows the Fair Work Ombudsman is increasingly willing to pursue the individuals involved in contraventions of the Fair Work Act 2009. This is especially true where the business has been previously warned about paying their workers correctly.
This case, and others like it, should serve as a timely reminder to decision makers and payroll staff of the importance of ensuring employees are paid correctly.
Awards can be tricky to navigate and Murdoch Lawyers assists business owners understand their legal obligations to employees.
Backpacker Tax
The Government’s much publicised ‘backpacker tax’ came into effect on 1 January 2017.
31 January 2017 was the deadline to register with the ATO if your business employs already employs working holiday makers on 417 or 462 visas.
If you intend to employ working holiday makers on these visas, you should register with the ATO.
After you register with the ATO, you must withhold tax at the rate of 15% for the first $37,000 of a working holiday maker’s income, with normal foreign resident withholding rates applying to income above $37,000.
If you employ working holiday makers and fail to register, you:
- must withhold tax at a rate of 32.5% on your working holiday makers’ income up to $87,000 (with normal foreign resident withholding rates applying to income over $87,000); and
- may be subject to penalties.
If you would like more information please contact:
Matt Bell, Director
Accredited Specialist – Business Law
07 4616 9860 or email Matt ;or
Michael Gibson, Law Clerk
07 4616 9810 or email Michael
This publication has been carefully prepared, but it has been written in general terms and should be viewed as broad guidance only. It does not purport to be comprehensive or to render advice. No one should rely on the information contained in this publication without first obtaining professional advice relevant to their own specific situation.
