Friday 3rd of June 2022
Business ownership is a significant responsibility due to the numerous commitments and tasks that
...must be completed daily. Entrepreneurs often rely...
Business ownership is a significant responsibility due to the numerous commitments and tasks that must be completed daily. Entrepreneurs often rely on technology and time management techniques to maintain industry standards and compliance. They delegate their workload to trusted and expert team members, staying on top of the latest trends and innovations. While they are focused on enhancing business productivity and customer satisfaction, they also have to manage certain obligations as an employer in the state of Western Australia.
Many new entrepreneurs are unaware of the mandatory duties that must be fulfilled carefully to comply with the law. They must ensure that they provide a congenial and positive work environment for their employees. They adhere to the terms of the employee contract and provide remuneration in accordance with industry benchmarks and government-mandated minimum wages. Let's take a detailed look at employer responsibilities for new entrepreneurs. These must be understood and followed without fail to meet obligations and employee needs.
Entrepreneurs who have started a business or acquired an existing one should know if they belong to the industrial relations system or the national system. It determines the employer's obligations related to wages and leave entitlements. Incorporated businesses in Western Australia fall under the national system, and others belong to the state system. The latter system includes entities set up as sole traders, trusts, and unincorporated partnerships.
In some cases, employers belonging to one system may be required to comply with the obligations of another system. For example, businesses that belong to the national system have to follow the state system for long service leave. Similarly, entities under the state system have to follow the national system for termination notices and parental leave. Therefore, employers must be aware of these responsibilities and the relevant laws to ensure compliance with them.
Equality in the workplace is a prerequisite for fostering a healthy work environment. New entrepreneurs who purchase small businesses for sale Perth must eliminate all possibilities of bias and discrimination of employees. The workers must be protected from harassment and unfair behaviour because of their age, colour, ethnicity, gender, sexual orientation, religion, disability, etc. The workforce must be trained in the equal opportunity policy and should have a process in place for handling employee complaints in a timely and objective manner.
If employers fail to maintain an equal opportunity environment in the workplace, workers can lodge a complaint, which is then resolved with the help of a conciliator. If the matter is not resolved, the complaint is referred to the State Administrative Tribunal.
Every employer is duty bound to provide a safe and healthy work environment for their employees. They must adhere to the Work Health and Safety Act 2020 and, prevent any mishaps and eliminate risks that can be injurious to the health of the workers. Employers must implement policies that reduce stress and burnout and promote a healthy work life balance to enhance employee well being.
New entrepreneurs looking for business opportunities in Perth must ensure that their workforce has access to protective gear when operating in hazardous conditions. Employees must be trained to use equipment and machines safely, and management must supervise operations to ensure these safety standards are maintained.
Employers must be aware of the minimum wages and entitlements set by the WA Industrial Relations Commission. They must check the award rates and casual loading for award-free adult workers to determine the minimum hourly payments. Employment conditions include work hours, leaves, notice of termination, and unfair dismissal, among others.
Employers can obtain more information about pay and employment conditions through Wageline if they are part of the state system. Businesses under the national system must get details from the Fair Work Ombudsman. Employers should adhere to the established norms regarding hours of work, breaks, and flexible work arrangements.
Entrepreneurs looking for a business for sale must understand their financial obligations as employers to ensure compliance. These include reporting employee earnings to the Australian Taxation Office (ATO) and collecting pay as you go withholding (PAYG) from the employee's salary to be paid to the ATO. Additionally, business owners must pay taxes on specific benefits they offer to their employees and their families, such as providing vehicles for personal use.
Employers are also obligated to contribute to employee superannuation funds and pay the payroll tax to the Consolidated Fund of Western Australia. The inability to pay these taxes or inaccuracies in the payment amounts can lead to penalties from the ATO. Thus, employers must hire accountants to determine their tax liabilities as an employer and fulfil them effectively.
Employers in Western Australia are required to maintain accurate and up-to-date financial and employee records. Businesses in the state system must maintain records of annual leave and long service leave for each worker during their employment period and for up to seven years after the employment ends. The employment records should be maintained for up to seven years after they are created.
Individuals planning to purchase a Perth business for sale must ensure they have records of employee details, timesheets, leaves, taxes, payslips, terminations, training, and superannuation contributions. Entrepreneurs must allow employees to access their records, and they should be aware that failure to maintain them can result in penalties.
Business owners in the state should obtain workers' compensation insurance to protect their employees and reduce risks. It is a legal obligation for all entities that employ workers, including contractors and family members who work for the business. It provides workers with appropriate compensation in the event of an injury or illness at the workplace, covering lost wages and medical bills.
New entrepreneurs who have recently purchased a business for sale in Perth should be aware of this obligation and should take out this insurance after comparing quotes from different insurers. Employers must claim the insurance in the event of any injury or illness suffered by workers as a result of their work.
Wrapping Up
Most new entrepreneurs are worried about building the infrastructure and modernising processes to gain success. It can cause them to overlook their obligations as an employer, which includes ensuring the safety and comfort of their employees. These responsibilities must be prioritised to stay compliant and build a strong team of satisfied workers.
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