1. PAYROLL & EMPLOYMENT BASICS Ian Southwood 31 May 2014

2. TOPICS Identify the main laws covering your pastor and other employees’ employment Be aware of 10 National Employment Standards Know what employment records to keep Understand the BUV recommended stipend (manse provided and manse not provided) Understand tax exempt benefits and the definition of religious practitioner Basic payroll and minimum requirements for an employee payslip

3. INDUSTRIAL LEGISLATION What are the main laws applicable to employment?

4. EMPLOYMENT LEGISLATION Fair work Act 2009 – https://www.fwc.gov.au/ Superannuation Guarantee Administration Act Victorian Long Service leave Act – http://www.business.vic.gov.au/hiring-and- managing-staff/long-service-leave-victoria Occupational Health and Safety Act 2004 – https://www.worksafe.vic.gov.au/ Equal Opportunity Act 2010

5. OTHER LEGISLATION Privacy Act 1988 Income Tax Assessment Act 1997 [PAYG] Fringe Benefits Tax Assessment Act 1986 [FBT] Tax tables https://www.ato.gov.au/Rates/Tax-tables/ https://www.ato.gov.au/Rates/Schedule-2---Weekly-tax- table/?page=10#PAYG_withholding_publications Template HR Policy & Procedure manual http://www.business.vic.gov.au/hiring-and-managing- staff/staff-recruitment/checklist-recruitment-process

6. MODERN AWARDS Pastors are not covered by a modern award – National Employment Standards (NES) apply. Clerks – Private Sector Award. Some administrative staff may fall under the Clerks award. Clerical work includes recording, typing, calculating, invoicing, billing, charging, checking, receiving and answering calls, cash handling, operating a telephone switchboard and attending a reception desk. Minimum wage $661.60 per week (Adult: level 1; year 1) 38 hours per week, not exceeding 152 hours per 28 days Certain overtime rates apply

7. NATIONAL EMPLOYMENT STANDARDS [NES] 10 Entitlements

8. NATIONAL EMPLOYMENT STANDARDS 10 minimum entitlements (employer can provide better entitlements) Applicable to people employed in Victoria Template leave application form (hand-out) http://www.fairwork.gov.au/employment/nati onal-employment-standards/pages/what-are- the-10-nes-entitlements

9. 1.Employers have to give the Fair Work Information Statement to all new employees. 2.Maximum weekly hours of work - 38 hours per week, plus reasonable additional hours. 3.Some employees have the right to ask for flexible working arrangements, which can only be refused for certain reasons. 4.Up to 4 weeks' notice of termination (plus an extra week if the employee is over 45 and has been in the job for at least 2 years) and up to 16 weeks redundancy pay.

10. 5.4 weeks paid leave per year, plus an extra week for some shift workers. 6.10 days paid personal (sick) / carer’s leave, 2 days unpaid carer’s leave and 2 days compassionate leave (unpaid for casuals) as needed. 7.up to 10 days paid leave for jury service (after 10 days is unpaid) and unpaid leave for voluntary emergency work. 8.Long service leave – as per state legislation 9.Paid days off on public holidays unless it’s reasonable to ask the employee to work. 10.Parental leave and related entitlements - up to 12 months unpaid leave, the right to ask for an extra 12 months unpaid leave and other types of maternity, paternity and adoption leave.

11. EMPLOYMENT RECORDS What employment records should I be keeping and for how long?

12. EMPLOYMENT RECORDS Employment agreement & Position description Payroll records (including Super contributions) Tax File declaration Leave dates Hours worked. Start and end dates Disciplinary records Termination records General employee information/ file Keep for 7 years after date of termination

13. EMPLOYMENT RECORDS Accident records (and medical and safety records related to an accident) Keep for 30 years after date of termination

14. BUV RECOMMENDED STIPENDS.

15. Is a recommendation, not mandatory Read in conjunction with “Guidelines for Healthy Church/ Pastor Relationships” Include agreed stipend in Statement of Understanding (employment agreement) between the church and the pastor. http://www.buv.com.au/about-us/finance- administration/stipends

16. RECOMMENDED WEEKLY STIPEND Manse not provided: Cash payment (50%): $705 Tax exempt benefits (50%): $705 Total stipend (100%): $1,410 Manse provided: Cash payment (50%): $705 Tax exempt benefit – manse: $320 *notional figure Tax exempt benefits - other: $385 Total stipend (100%): $1,410

17. TAX EXEMPT BENEFITS

18. A proportion (50% recommended) of a pastor’s total stipend can be paid as a tax exempt benefit (as opposed to cash), provided that: The employer is a religious institution; The employee is a religious practitioner; The benefit is provided to the employee, their spouse or their child; and The benefit is not provided principally in respect of duties of the employee other than: – Any pastoral duties; or – Any duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs

19. RELIGIOUS PRACTITIONER A minister of religion (ordained or recognised); A student at an institution who is undertaking a course of instruction in the duties of a minister of religion; A full-time member of a religious order; or A student at a college conducted solely for training persons to become members of religious orders. http://www.youraccountant.net.au/tguide/guide/TRhbook/TR11050.asp

20. BASIC PAYROLL.

22. BASIC PAYROLL - CONTINUE Email BUV to obtain template payroll file (MSExcel): finance@buv.com.au

23. Email BUV to obtain template tax calculation file when paying out leave (MSExcel): finance@buv.com.au

24. THANK YOU Questions?