International Payroll Services

Transcription

1 International Payroll Services

2 The ability to manage a global workforce and comply with the localised regulations and requirements are paramount for any expanding business. Easy Payroll can provide a seamless extension to your business by providing professional guidance in the ongoing employment and payroll of staff in Australia and throughout the world. SYDNEY LONDON NEW YORK

3 Staff in Australia There are basically two options available when looking to payroll staff Australia. 1. Setting up a local entity If you are looking to employ staff in Australia, there are some minimum prerequisites an employer must meet to be legally compliant. Below is a breakdown of these requirements. (There are variations on these depending on the nature of your business operations in Australia, please contact EP for more advice.) Easy Payroll can step in and assist with any or all of the following items. Basic Legislative Requirements for Australian Businesses (Other Incorporated Entity) (non GST) Register for ABN Public Officer Nomination and applicable tasks Register for GST (If Applicable) Register for PAYG Witholding Legislative Reporting (IAS) Payroll Tax Lodgement & Payments (over thresholds) EOFY Tax Lodgement and Compliance (Tax Accountant only) Legislative requirements for staff employed under Company ABN Employee Engagement (initiate/build employment contract) Public Liability Insurance Professional Indemnity Insurance Workers Compensation Insurance Payroll Processing Payslip delivery, Payment Summary etc. Monthly Reports Superannuation Processing & Payments Default Super Fund Setup EOFY processing (ATO Payment Summary s) Bank Transfers to AUD accounts 2. Employment Outsourcing Another option for international companies engaging staff in Australia is to have the staff employed by Easy Payroll. This relationship is facilitated by a tri-party contract where the Client (you) will have the exclusive rights to utilise the employee for your business purposes. As the employer, Easy Payroll will engage the employee and manage all employment related items (As mentioned above). This option relieves the client of the burdon, risk and tedious process of setting up and managing an entity in Australia while maintaining full control of the staffing and their activities.

4 Staff outside of Australia Each country is individual and intricate with their localised payroll legalities and intricacies. If you are looking to place staff internationally, Easy Payroll can manage the payroll processing of these employees according to the local country s requirements so you do not have to worry about these implications. Please be in touch should you require company specific feedback on your situation. International Money Transfers Easy Payroll and Western Union Business Solutions provide a streamlined payment service to facilitate international currency transfers. The recognised, secure platform enables one lump sum amount to be paid from your local currency into a WUBS segregated account. Once the funds are received, the equivalent value (depending on the exchange rates) will be available in the international destination and currency to action payroll related payments to the relevant banking destinations. The WUBS capabilities enable localised payments in each country without the need for local bank accounts or entities to be setup. This will save money and time on setup fees, ongoing banking fees and inflated exchange rates. Most importantly, it provides a secure, transparent payment platform and segregated account to ensure international transfers are managed efficiently and safely.

5 What do you need to know about paying people based in Australia? Basic Legislative Requirements for Australian Businesses (Other Incorporated Entity) (non GST) Register for Australian Business Number (ABN) This is a basic requirement for any company wanting to have employees in Australia, irrespective of the fact if the people being employed are termed as employees or contractors. With recent legislative changes it has become very difficult for contractors to demonstrate that they are truly independent. This has led to the employers being required to fulfil standard employment obligations like Pay As you Go withholding, Superannuation obligations and in some cases Payroll Tax obligations as required. All mandatory reporting in Australia for employees is done through registered ABN which is required by the Australian Tax Office. Registration of the ABN although simple and straight forward also mandates the need for each ABN to have a Public Officer as per below. Public Officer Nomination Section 252(1) of the Income Tax Assessment Act ( Tax Act ) requires that every company be represented by a duly appointed Public Officer within 3 months after the company commences to carry on business or derive income in Australia to ensure its various taxation-related obligations and responsibilities are fulfilled. In summary, the Public Officer is responsible for ensuring that the company complies with the tax law and for liaising with the ATO concerning the company s taxation matters. Such person is also Public Officer for all other tax laws (Sec 56 Taxation Administration Act).Whilst the Tax Act actually only requires this appointment if the company is carrying on business or deriving income in Australia, in practice such appointment is usually part of the standard process when incorporating through shelf company providers. Under Sec 252(3) the criteria to be a Public Officer includes that a person must be at least 18 years of age and an Australian resident. The Public Officer must be a natural person. Note in particular that under the Tax Act: the Public Officer is answerable for all things required to be done by a company under that Act (and any other tax laws or regulations) and shall be liable for the same penalties; any proceedings taken against a company may also include the Public Officer and he may be jointly liable with the company for any penalty imposed; - Roles/tasks for the Public Officer include. In summary, the Public Officer is responsible for ensuring that the company complies with the tax law and for liaising with the ATO concerning the company s taxation matters. Such person is also Public Officer for all other tax laws (Sec 56 Taxation Administration Act). Typically a public officer will be answerable for signing, submitting, all mandatory documentation relating to things like: Register for GST (If Applicable) Registration is required for entities that engage in Goods and Service type business. If required, a Business Activity Statement needs to be submitted monthly or quarterly depending on the size of the company. Register for PAYG Witholding or (IAS) Registration and lodgement of IAS is required for entities with PAYG Employees on a monthly or quarterly basis Payroll Tax Lodgement & Payments Payroll tax is a state tax on the wages you pay to employees. It s calculated on the amount of wages you pay per month. You need to pay payroll tax if your total Australian wages exceed the exemption threshold in your state or territory - this varies between states. EOFY Tax Lodgement and Compliance Even if you generate no income in Australia and there is no company tax payable, a Public Officer still needs to be available to sign necessary documentation and should the need arise liaise with the Australian Tax Office.

6 Legislative requirements for staff employed under Company ABN Employee Engagement (initiate/build employment contract) - an Official letter of offer stating clearly conditions of employment and where applicable conforming to established mandated Industry awards Public Liability Insurance - This type of insurance provides protection against legal and court costs (i.e. legal liability) in the event that someone is injured, or has their property damaged while you are providing a service to them. This type of insurance covers incidents that occur not only on your premises, but also at events you may produce in external locations. Professional Indemnity Insurance - If a mistake or omission occurs in the course of your work that results in financial loss or injury to a third party (e.g. a customer) that customer may take legal action against you to recover their losses. Professional Indemnity insurance seeks to protect both your assets and your reputation, should this occur. Workers Compensation Insurance - Compulsory for any entity which carries on business in Australia to have Workers Compensation Insurance especially if it employs people in Australia in any capacity Payroll Processing Payslip delivery, Payment Summary etc. Employees are entitled to receive payslips in either electronic or non electronic forms post payroll processing periods. These payslips must conform to standard mandatory layouts as per Fair Work Australia Monthly Reports - For entities carrying on business in Australia it is vital to ensure that all payroll related calculations are correct and accurate and adhere to legislative requirements on a monthly basis Superannuation Processing & Payments Default Super Fund Setup - An Employer is required to make super contributions for an employee. For super guarantee purposes an employee is entitled to the super guarantee. These contributions are required to be paid to a complying super fund or retirement savings account. A recent legislative change has mandated employees being able to choose their super fund. EOFY processing (ATO Payment Summary s) - At the end of each financial year it is a requirement for all employers to submit End of Financial Year reports to the Australian Tax Office it is vital for these reports to conform with Monthly/Quarterly BAS/IAS submitted to the Australian Tax Office Bank Transfers to AUD accounts Australian based employees will in most cases require their wages to be paid into their Australian bank account. An entity may need to have an Australian bank account to avoid costly international transfer fees. Options are available with EP for international funds transfers etc to minimise these costs.

7 EASIER. SMARTER. FASTER. To find out more please contact Easy Payroll on +61 (02) or Offices Australia Wide Sydney Office: +61 (02) Perth Office: +61 (08) Every step of the way