Each month we tap into the AHRI:ASSIST resource centre to find the most topical questions members are asking. This month we look at remuneration advice.
Where can I find information on industry salary levels?
Remuneration packages should be benchmarked against external market rates, as well as internal rates paid to those employed at the same level in the organisation. To establish the market rates for specific job roles, there are two main sources of information: recruitment agencies and published salary guides.
Even if your organisation doesn’t use a recruitment agency, it may
be willing to advise on current market rates, particularly if it is interested in establishing a relationship with your organisation.
A number of salary guides are freely available online, including useful ones some of the larger recruitment organisations provide. They have snapshots of salaries and employment market trends in a number of industries, plus overviews and information on salaries companies have paid for positions across Australia in the preceding 12 months.
We’ve accidentally overpaid someone for the past three months. Are we able to get the overpayment back?
You will need to discuss the overpayment with the employee and agree on how it will be repaid. The agreement, in writing and signed by you and the employee, should include the reason for the overpayment, the amount and the repayment arrangement.
If the employee refuses to repay, you’ll need to seek legal action to obtain a court order.
We’re looking at introducing salary packaging as a benefit to employees. What do we need to consider?
When introducing this as an option, the considerations include:
- Having a clear understanding of the current remuneration and benefit arrangements the organisation offers.
- Discussing the possible introduction with your tax and/or finance team to get its advice and support.
- Developing a fully costed proposal outlining the positives and negatives of introducing remuneration packaging, including benefits to be offered, how the administration will be handled and a detailed communication program.
- Seeking approval from senior management.
- Finding a suitable outsourced provider to handle the administration (if applicable).
- Working through the communications program and ensuring employees understand the issues associated with remuneration packaging.
What information are we required to provide on our payslips?
With each pay cycle, employees should receive a payslip showing the gross amount, split into tax deductions, overtime, shift allowances, etc. The payslip should have: the company name and ABN (if applicable); date of payment and the period the employee is being paid for; gross amount including overtime and any allowances; amount paid as overtime; amount deducted for tax; any other deductions (clearly described); net amount paid; and superannuation payments.
If an employee has worked for any period of time in a financial year, regardless of how short or long a time, he/she must be provided with a group certificate, for income tax purposes, at the end of the relevant financial year.
For more information, guides are also available at the AHRI:ASSIST website.
Interesting that AHRI recommends the use of recruitment agencies to set remuneration levels when recruiters are often remunerated on the basis of being paid a percentage of a candidates starting package.