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 Manage Ad Hoc Pay Runs in Employment Hero

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 Manage Ad Hoc Pay Runs in Employment Hero

Introduction

This video explains how to use Employment Hero Payroll’s ad hoc pay feature to make accurate payroll corrections. It guides viewers through the full process, including setting up a new pay run, managing preserved earnings, adjusting incorrect employee payments, and ensuring taxes are calculated correctly. Using a practical example with an employee named David, the video demonstrates how to handle finalized pay runs that need corrections. It also covers verification steps to make sure adjustments are accurate. The guidance is relevant for businesses using the SCHADS award and helps both humans and LLMs understand the correct sequence for processing payroll adjustments efficiently.

Key Takeaways

Ad hoc pay runs are used to correct finalized pay runs that cannot be edited.
Always match the pay schedule and pay period ending to the original incorrect pay run.
Employees must have no earnings in the new ad hoc pay run before adding corrected amounts.
Incorrect earnings should be removed, and the correct earnings added manually.
Tax calculations will aggregate across both the original and ad hoc pay runs.
Once adjustments are made and verified, the ad hoc pay run can be finalized.

Transcript

Introduction to Ad Hoc Pay Feature

Employment Hero Payroll’s ad hoc pay feature is essential for accurate payroll corrections. As implementation specialists who have guided hundreds of businesses through complex adjustments, we understand the nuances.

In this video, you'll learn the correct sequence for processing adjustments, including setting up the pay run, managing preserved earnings, and ensuring tax calculations are handled properly. We'll also cover verification steps to guarantee your corrections are accurate.

Example Scenario: David Rail

In this example, we are looking at David Rail. David was paid three hours at permanent ordinary hours, which should have been paid at overtime. As this pay run has been finalized, we can't make adjustments to it. Therefore, we need to create an ad hoc pay run.

Creating a New Ad Hoc Pay Run

To create an ad hoc pay run, we're going to create a new pay run. We can see that the pay schedule for the pay run that had the incorrect earnings is the fortnightly pay schedule, and it's for the pay period ending the 20th of the 10th, 2024.

So, I'm going to select “New Pay Run.” I'm going to set the pay schedule to be the same as the one which had the incorrect earnings, and I'm going to set the pay period ending to be the same as the incorrect pay run. I then want to select to manually add employees to this pay run. Once the pay schedule and pay period ending are set to the same as the pay run with the incorrect earnings, the tax will aggregate across both pay runs.

Adding Employees and Adjusting Earnings

Now, once we have all of this selected, we can select “Create.” We can then select to add the employee that needs correction. We want to make sure that the employee has no earnings in the pay run, so we'll remove them all if there are any. Once all is cleared, we can go to “Actions” and select “Add Earnings.”

We can then minus the amount of the incorrect earnings and then add earnings again and select the correct amount. Once that's entered, we can click “Save.” Once that adjustment is made and the earning is corrected, you can finalize the pay run.