As another financial year bites the dust, now’s the perfect time to tick off some key tasks for a smooth, seamless transition into FY19-20.
I don’t know about you, but the first six months of the year flew by. Within the next week we’ll be wrapping up yet another financial year, one that’s been filled with new clients and candidates, success, change, and a firm vision for what comes next.
So as we count down the days, what are the key things HR managers should be considering as we bring this year to a close? Here’s our top five tasks for the week ahead.
1. Study up on Single Touch Payroll
Single Touch Payroll (STP) is set to be the biggest change for businesses since the GST was introduced back in July 2000. And just as you’ve worked hard to master your IAS and BAS statements, now’s the time to apply that same work ethic to STP.
The new way of reporting your payroll information to the ATO was introduced in an effort to:
- Create a more level playing field.
- Protect employees’ superannuation entitlements.
- Enable the ATO to digitally interact with businesses.
It will impact all businesses that employ 20 people or more, so make sure you track down a payroll system that will manage this reporting and communicate changes to team members. The STP also cancels out the need to provide payment summaries for the 2018-19 financial year, so ensuring employees are across myGov access is a wise move for a smooth transition.
2. Prepare payment summaries
By 30 June, people will come knocking for their payment summaries so they can put through their tax returns. Get ahead of the game and ensure they’re prepped and ready to go, and let employees know when they’ll receive them to avoid a barrage of unnecessary emails and phone calls. Of course, if you’re using an automated system they’ll be automatically delivered, so just make sure you’re across that timing so you’ve got the right information on hand.
3. Follow the Fair Work Ombudsman
If you’re not already following the Fair Work Ombudsman via their social media platforms and email updates – get on it today and ensure you comply with all relevant reviews. This end of financial year, for example, saw the Annual Wage Review released, where the Fair Work Commission announced a 3.0% increase to minimum wages. This kicks in from the first full pay period starting on or after 1 July and sees the new national minimum wage sit at $740.80 per week, or $19.49 per hour. Ensure payroll is aware of the changes and should it impact specific team members, let them know as soon as possible to nurture an open and honest work environment.
4. Prepare for staff reviews, and potential promotions
Most businesses use July to conduct their staff reviews, make any pay adjustments and award promotions. It’s a positive way to herald the new financial year, and it pays to be prepared well in advance. So make sure you establish timelines for all reviews and ensure managers and their teams are not only across the proposed schedule, but understand what’s expected of them throughout the process. It’s worthwhile putting some key guidelines in place for management too, and consider hosting a team meeting to run through each point, resolve any queries and ensure every member of staff is walking into those reviews on the same page.
5. Review your strategies and goals
How’s the business tracking? What changes have been made and what impact has it had on the overall business strategy to date? What are team members doing to fuel business growth, and how can this be improved? These are the types of questions you should be asking yourself and team members as you strive towards a brand new financial year and use responses to update and align your goals with the year that lies ahead.