Payroll, Hourly Rates, Awards and Fairwork: P.A.C.T
As accountants we get asked from business clients all the time, what is the rate of pay for my employees and what is the applicable award. As accountants we may not know exactly what the base hourly rate is for each employee you hire off the top of our head but we know exactly where to look for it and hence can point you in the right direction.
For business owners such as you there is a Fairwork tool called PACT, which can be used to determine exactly how much you should pay and the applicable award. Whether you are an employee or an employer; P.A.C.T is a simple tool that can assist you in determining your entitlements or obligations. This e-tool has been introduced by Fair Work Ombudsman to help you find the information that you need in regards to fair pay.
By using P.A.C.T. (Pay and Condition Tool) you are able to determine the minimum award pay rates and the entitlements for the Fair Work System in Australia. The following are the four different types of calculators that you can find in P.A.C.T:
- Pay Calculator: the pay calculator calculates base pay rates, allowances and penalty rates (including overtime).
- Shift Calculator: For shift calculations, it calculates a sum of pay rates of upto 4 weeks of shifts.
- Leave Calculator: This calculator calculates:
- Annual leave
- Annual leave loading
- Sick and carer’s leave.
You can use the Leave Calculator to determine how much annual or sick/carer’s leave has accumulated under the applicable award. Leave accumulates during the year and any unused annual leave will roll over from year to year. This calculator is based on the National Employment Standards (NES). If under your agreement, you are entitled to more leaves than NES then you shouldn’t be using this calculator.
- Notice and Redundancy Calculators: This calculator calculates entitlements when employment ends including notice to be given (by employee or employer) and the redundancy pay. Using this calculator, you can find out how much notice and redundancy pay is required under their award or under the National Employment Standard (NES). But if there is a different agreement between employee and employer other than the standard NES has provided, then,you should avoid using this calculator.
If you’re not sure if you are getting paid correctly or you are not sure how to pay your employees correctly, it is important to find out the accuracy of your payment and this tool is available to everyone: Relevant link to the fairwork website below. If you are in business and need assistance with bookkeeping, payroll or advice, kindly contact one of our friendly accountants.
Sources: https://calculate.fairwork.gov.au/FindYourAwardSources