Do you fear that some of your franchisees are not complying with workplace legislation or believe there's 'nothing to see here'? Well, there's plenty to watch out for.
Responsible franchisors must address payroll in their planning for the year ahead.
One important change comes from the introduction of Single Touch Payroll. This means there are big changes ahead for how Australian businesses process and report payroll. And the new rules will apply to all businesses that employ 20 or more people.
Here are 5 things to consider:
1. Award compliance
The Fair Work Ombudsman will continue to do her job of education and enforcement in this area. Franchisors should be proactive in this area, whether that's providing advice for the larger networks or working with advisers who can work out a practical solution based on a realistic risk assessment.
2. Single Touch Payroll
Any business with 20 or more employees should now start to consider the implications of Single Touch Payroll. This new system for live reporting of wages and tax will be mandatory in less than two years.
3. Financial pressures on franchisees
Lots of franchisees are under financial pressure. This can be a result of rising rents, competition, and slow retail sales growth. The question becomes how to increase profit in this environment. Because payroll is the most significant controllable cost for many, attention should definitely be paid to this aspect of business.
4. New franchisees skills in payroll and HR
New franchisees don't know much about payroll and HR. It's no surprise; they have usually never run a business before and someone else managed their pay. Plus, those who come from overseas have little or no awareness of the Australian workplace environment.
Consider what you are doing to understand, and address, the real issues.
5. Communicating your approach
The way you approach payroll and workforce planning, and what you communicate will enhance or detract from your reputation. This then flows on to both network growth and franchisee relationships. Would-be franchisees and their advisers will be looking out for how a network handles this area of business.
- The upcoming Franchise Accountants Conference will include topics around payroll and workplace management, including include Award Compliance and Single Touch Payroll.