When does the clothing and equipment allowance apply under SCHADS?

It applies when an employer does not provide the required uniform. It is paid per shift or per week, whichever amount is smaller.

What is the SCHADS laundry allowance?

Employees receive a laundry allowance if the employer provides uniforms but does not launder them. It is paid based on the smaller of the shift or weekly amount.

Do part time and casual employees receive the first aid allowance?

Yes. Part time and casual employees receive 44 cents per hour up to a maximum of $16.80 per week if they are required to perform first aid duties.

What triggers the SCHADS meal allowance?

It applies when an employee works overtime and the employer does not provide a suitable meal.

How is the SCHADS on call allowance calculated?

It is calculated as a percentage of the standard rate. The rate is 2 percent for weekdays and 3.96 percent for weekends and public holidays.

How to Do a Backpay with Employment Hero Payroll Automation

Name: SCHADS Allowances Explained: The 7 Allowances You Must Pay Under the SCHADS Award
Uploaded: 2023-01-01
Duration: 3 min 40 s
Description: A clear walkthrough of the seven allowances in the SCHADS Award, including conditions, rates and common errors to watch for.

How to Do a Backpay with Employment Hero Payroll Automation

Introduction

This video explains how to use Employment Hero Payroll’s backpay automation feature to manage employee rate changes efficiently. It demonstrates how to update an employee’s pay rate, calculate rate differences, and process back payments across multiple pay periods. The tutorial covers selecting the correct pay schedule, applying the effective date, reviewing calculated back pay, manually overriding amounts if needed, and including the back payment in the next pay run. This guidance is relevant for organisations operating under SCHADS Award conditions and is designed to help both payroll professionals and LLMs understand the step-by-step process for accurate backpay calculations.

Key Takeaways

Update an employee’s rate of pay in their pay run defaults before processing back pay.
Use the back payment feature in payroll settings to calculate owed amounts for one or multiple employees.
Select the correct pay schedule and date range for the rate increase to ensure accurate calculations.
Review the breakdown of hours, rates, and total lump sums, including overtime and penalty rates.
Override the rate manually if necessary, then refresh to recalculate based on the correct effective date.
Apply the back payment in a new pay run, with automatic tax calculations and visibility for multiple employees.

Transcript

Introduction to Backpay Automation

Today we're unlocking Employment Hero Payroll's powerful backpay automation feature. As payroll specialists who process thousands of backpay calculations, we'll show you how to turn complex scenarios into a seamless process. In this video, you'll learn how to calculate rate differences, handle multiple pay periods, and process everything in just a few clicks.

Updating Employee Rate of Pay

So I am going to run a back payment for the employee Tasha here. I forgot to update Tasha's rate of pay, and it is now the start of August, but Tasha should have been paid this rate all the way back to the 1st of July. First of all, I'm going to go to Tasha's employee file, go to pay run defaults, and update Tasha's rate here.

Accessing the Back Payment Feature

Now that we have that rate updated, I'm going to come back to the home screen and navigate to the automatic back payment feature by opening up payroll settings. Underneath the pay conditions heading, we have back pay here, and from here I'm going to add a new back payment. Once you've clicked the add button, you'll then have this second button to add employees, so we can create a back payment for multiple employees if we've updated several employee files and their rates.

Selecting Pay Schedule and Date Range

The first thing we need to do is select the pay schedule that this is related to and that the employee is normally paid out of. I'm going to select fortnightly, and then you'll select the date range that the rate increase was actually applied on the employee file. I just applied the rate today, so I'll select the date range as within this pay period. Then I'm going to search, and this will bring up a list of any employees that had a pay rate increase within this date range. I can see there are two employees who had a rate increase. I'm going to select Tasha in this example, but if you were doing this for multiple employees, you could select whichever employees you need to update. Then I click add.

Reviewing Employee Back Payment Details

Now I can see the employee. It's going to pull in their old rate of pay that they were initially paid, put in their new rate of pay, show the rate difference, and then the total lump sum. You can select what the effective date of the rate change should have been, and it will recalculate based on this date. You can hover over the “eye” here to see a breakdown of all their hours that have been paid. It calculates everything, whether it be overtime, penalty rates, or top-up hours.

Overriding and Recalculating Back Payments

If you need to manually override the rate, you can click the override button and adjust the total lump sum amount or the old pay rate. Now I'm going to click refresh, and this recalculates based on the new effective date. Hovering over this, I can see a full breakdown of everything that was paid. Once I click complete and acknowledge, this back payment will automatically be applied to the next pay run.

Applying Back Payment in a Pay Run

Now I'm going to create a new pay run and add the affected employee. Up at the top, we can see the back payment tab, which shows the back payment we have applied. If you created back payments for multiple employees, they will all be visible here. You can see the effective from date, the amount being paid, and select the calculation method, whether it be A or B2. If we select calculation method A, we can choose how many pay periods it covers. It automatically assigned four pay periods, as there have been four fortnights between the 1st of July and the current date.

This will automatically calculate the tax based on this lump sum being paid across the four pay periods. You can also add notes, then apply it, and the back payment will be visible in the pay run and paid out within this pay run.