Payroll Compliance: Aged Care Industry

Cloud-payroll software can play a vital role in ensuring payroll compliance in the aged care industry.

The Importance of Modern Award Compliance

Payroll compliance in Australia is a complex and ever-changing landscape. With the introduction of Modern Awards, employers must ensure that they are correctly paying their employees in accordance with the relevant Award. 
This includes accurately calculating pay rates, penalties, and allowances and keeping accurate records. Failing to comply with the requirements of a Modern Award can lead to significant penalties, including back-payments and fines. For example, an employer who fails to pay their employees the minimum wage could be fined up to $63,000 per breach. 

As such, employers need to have a thorough understanding of their obligations under the relevant Award.
In the aged care industry, this is no exception, making it crucial that you – as a business – know where your responsibilities sit.

Biggest Pitfalls in the Aged Care Industry

The Aged Care Modern Award in Australia covers all employees who work in the aged care industry. This includes employees who work in nursing homes, hostels, residential care facilities, home care services and day respite centres
The award sets out the minimum terms and conditions of employment for aged care workers, including wages and hours of work. It also contains provisions relating to leave, rostering and shift work, superannuation, and workplace health and safety.
The Aged Care Modern Award is a vital tool for ensuring that aged care workers are fairly compensated for their work. And if employers don’t comply with the Award, they can be subject to penalties.
There are several reasons why an employer might not comply with the Award. They may be unaware of their obligations, or they may deliberately choose to flout the rules. However, in some cases, non-compliance can result from unintentional errors or inadequate systems and processes. Whatever the reason, non-compliance with the Award can have serious consequences for aged care service providers.
Unfortunately, there’s not much guidance from the Fair Work Commission regarding staying compliant with all its regulations. In addition, the Fair Work website is not always easy to navigate, and it can be hard to find the information you need. So we often find employers fall into non-compliance traps purely on the grounds of a misunderstanding. 
Combined with the very technical legal jargon, it’s no wonder that so many businesses struggle to stay on top of their compliance obligations.  
For example, there are various conditions for requiring employees to sleep over, such as how long the sleepover can last, facility access and overtime rates. 
This is a common condition in the Aged Care Award that catches a lot of businesses off-guard.
Employers in the aged care sector must also be aware of the potential pitfalls associated with allowances.
Employees are eligible for specific allowances based on their skills or tasks, which can often be significant. 
For example, if you require your staff to sleep over, they must be given free board and lodging for each night that they have to sleep over, including a separate room with a bed and an additional sleepover allowance.
Most employers believe that they can add a chunk of money to their employees’ salaries. But it doesn’t work that way. It’s your responsibility to pay them each and every allowance relevant to their line of work. You could be subject to some pretty harsh penalties if you fail to do so.

So, what is the solution? Cloud payroll software and automated time and attendance software. 
As the aged care industry continues to grow, so does the need for compliance with government regulations. One of the most complex and time-consuming compliance areas is payroll. Aged care providers must ensure that their employees are paid correctly and on time, while also complying with a range of tax and superannuation laws.

While many aged care providers still use manual payroll processes, this is no longer an efficient or effective way to manage payroll compliance. Automated cloud-based payroll software can save aged care providers both time and money by automating many of the tasks involved in payroll compliance. For example, cloud-based software can help to calculate employee hours worked, identify errors in timesheets, and generate accurate payslips.

Employment Hero Cloud Payroll

Employment Hero Payroll’s cloud payroll software automatically applies modern award or enterprise agreement rules to ensure your business remains compliant year-round. 

Beyond that, you can automate your entire payroll process from importing timesheet data, gross to net reporting and leave accruals for all scenarios to super calculations and ATO reporting.


NoahFace Time &
Attendance Software

NoahFace offers an app-based time and attendance software called NoahFace Go which automates scheduling, time tracking and attendance records for site workers. 

In addition, the timekeeping records will automatically integrate with your Employment Hero cloud payroll software. 


Employment Hero

Go paperless and automate the employee onboarding process with Employment Hero’s employee HR software - an end-to-end people management platform that covers every aspect of the employee lifecycle.

By incorporating everything you need to recruit, onboard, roster, and manage your aged care team, Employment Hero increases efficiency and drives productivity across every aspect of your workforce.


How Pay Cat Can Help

As an aged care business owner, you know that efficient payroll is essential to the success of your business. But with so many other demands on your time, it can be difficult to keep up with the paperwork and make sure everything is done correctly. 

Unfortunately, manual payroll processes can be error-prone and time-consuming, leading to compliance issues.

Pay Cat can help take the hassle out of payroll by offering an all-in-one system that makes it easy to manage your employee information, process payroll, and stay compliant with government regulations. 
With varying modern awards and industry regulations to get your head around, we understand that working out your obligations as an employer can be overwhelming.
We understand that running a business is complicated enough without having to worry about payroll compliance issues. 
That’s why we offer a comprehensive range of services designed to keep your business in line with relevant regulations, awards and employee entitlements. From implementing payroll software and time and attendance solutions to providing training and advice, our team of experts can help you identify potential compliance problems before they become serious issues. 

We also offer a range of support services to help you stay up-to-date with industry-specific standards. 
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Never get it wrong. No back pay calculations. No inefficient manual interpretation. No data re-entry. 

If you’re interested in moving from a manual payroll system to an automated cloud payroll system, get in touch with us today for a free demo.