Dynamics 365 FAQ
No, but you can always get the payroll integration from the Microsoft certified ERP and CRM services provides like DHRP.
The payroll module is included in the package when you buy Dynamics AX 2012 or Dynamics 365 for Finance and Operations. You don’t need to pay for an add-on service or perhaps another payroll service because you already have all you need for free!
Dynamics 365 in itself is a great tool, however, when you talk about the payroll module, you may need to lookup add-on products from a reliable services provider for a fully integrated program.
Standard Payroll FAQs
The Fair Work Act of 2009 and the National Employment Standards (NES) regulate the majority of payroll compliance in Australia. These specify the minimum salary, working hours, leave entitlements, and other employee rights. The Modern Awards apply these ideas to each industry, establishing minimum pay rates and conditions.
While you are setting up payroll in Australia, you need automated software; however, you will also need the following:
- Apply for an Australian Business Number (ABN)
- Register for Goods and Services Tax (GST) if applicable
- Register for Pay As You Go (PAYG) withholding
- Apply for a Tax File Number (TFN)
- Open a business bank account
- Collect employee information (tax, superannuation, and bank details)
- Choose and set up STP-enabled payroll software
Superannuation is an Australian retirement savings plan. In this plan, companies are required to contribute a portion of an employee’s salary to their super fund. As of July 2024, the compulsory contribution rate is 11%, and businesses must make timely and precise contributions to avoid penalties.
PAYG (Pay As You Go) withholding is a tax collection mechanism in which employers deduct and pay taxes to the Australian Tax Office directly from their employees’ paychecks. It ensures that employee taxes are paid on a monthly basis rather than in one lump sum at the end of the fiscal year.
Tax rates are based on income. As per the new taxes, a 30% marginal tax rate will apply to taxable income between AUD 45,000 and AUD 135,000, and a 37% marginal tax rate will then apply up to AUD 190,000, after which the top marginal tax rate of 45% will apply.
The NES outlines employees’ minimum entitlements, such as working hours, paid leave, and redundancy pay. Employers must ensure that their payroll meets these criteria, as well as any industry-specific Modern Awards.
Awards are presented to businesses and workers based on their industry and job type. Awards are not applicable if an employer has an Enterprise agreement in place. Enterprise agreements specify minimum employment conditions and can be applied to a single company or a group of companies.
Yes, an employee is entitled to their regular pay and accrues leave entitlements for each keeping in touch day or part day.
Noncompliance with industry-specific Modern Awards can result in severe penalties, particularly in hazardous industries such as mining and construction. In July 2023, Cross River Rail was fined 225,320 AUD for failing to follow occupational health and safety regulations.
No federal legislation dictates how long employers have to correct a payroll issue. However, businesses cannot just take their time, especially if they have underpaid an employee.
As an employer, you must pay your qualifying employees super guarantee (SG) at least four times yearly. Starting July 1, 2024, the minimum SG rate you must pay to each eligible employee will be 11.5% of their ordinary time earnings (OTE). This is scheduled to increase progressively to 12% by July 1, 2025.
When overpayments occur, the employer and employee should negotiate and agree on a payback plan. If the employee agrees to reimburse the money, a written agreement should be made that explains the basis for the overpayment. Amount overpaid.
The first step is to fix the deduction issue in the payroll system. Next, adjust the next paychecks to cover the over-deducted amount. You should notify all affected employees about the issue and specify when the fixes will be reflected in their pay.
Compliance Questions
PAYG withholding happens when tax is deducted (withheld) from certain payments and paid to the Australian Tax Office. It helps employees reduce the amount of tax they must pay at the end of the fiscal year.
Employers must take three critical procedures to avoid payroll errors that could result in legal consequences:
- Keep up to date on employment and tax laws; you may want to seek a legal counsel for payroll administration.
- Select a dependable and compliant payroll software.
- Conduct employment background checks on the persons who handle payroll in your firm.
Employees who handle payroll must be familiar with the Australian payroll system and adept at using the software.
Key changes include:
- Superannuation Guarantee Increase: The employer contribution rate will rise from 10% to 11% starting 1st July 2024.
- Changes to PAYG Tax Tables: Regular updates by the ATO impact tax rates and thresholds.
- Minimum Wage Increase: Employers must ensure compliance with any wage adjustments announced by the Fair Work Commission.
Yes. Keeping in Touch days are equivalent to ordinary working days. The only difference is that it does not impact the employee’s access to unpaid parental leave. Payments made to your employees for working these days are considered ordinary time earnings and are so superable. If this indicates that the employee fits the eligibility standards for superannuation, he or she must be compensated for those days.
Payroll software, such as Dynamics 365, connected with the DHRP payroll add-on, can help businesses streamline compliance by automating tax computations, managing employee information, and ensuring that superannuation and tax requirements are up to date. Integrated systems ensure that payroll processing is accurate, fast, and legally compliant, lowering the risk of noncompliance.
