accolade february 2014

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February 2014 - ISSUE 4 A magazine for global payroll & HR industry professionals Accolade Accolade Karen Paterson: Here comes 2014 This Changing World It’s Impact for global organisations Data Protection 2014 The Key Legal changes + 9 Social Media Recruitment Mistakes + USA Minimum wage rises in 14 states + Indonesia A complete Tax return guide +

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Thought Leadership for the HR & Payroll Market

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Page 1: Accolade February 2014

February 2014 - ISSUE 4A magazine for global payroll & HR industry professionals

AccoladeAccolade

Karen Paterson:Here comes 2014

This Changing World

It’s Impact for global organisations

Data Protection

2014The Key Legal changes+9 Social Media

Recruitment Mistakes+ USA

Minimum wagerises in 14 states+ Indonesia

A completeTax return guide+

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Restructuring

The two main changes likely to have a significant impact on the way that HR professionals advise businesses during restructuring operations relate to collective consultation and Tupe obligations. The recent Tupe consultation caused much discussion within HR networks. The government’s final measures will be introduced from 31 January 2014 and include the following:

• “employee liability information” mustbe provided by a transferor 28 daysprior to transfer, rather than 14days beforehand as previously

• any terms and conditions negotiatedunder collective agreements may be re-negotiated from one year post transfer,provided the changes are no lessfavourable overall for employees

• a change of workplace location followinga transfer will be included within an“ETO” reason, meaning employerscan make redundancies caused bythe relocation without becoming liablefor automatically unfair dismissals.

A number of key legislative changes were introduced last year. With many of these laws coming into effect over the course of 2014, businesses and HR professionals must ensure they plan now how to respond to them.

These provisions are intended to make transfers smoother. The addition of change of location to other transfer-related actions covered by the ETO defence will certainly assist some employers.

Collective consultation

Many businesses will also be affected this year by a surprise Employment Appeal Tribunal ruling regarding collective redundancy consultation. Under the Trade Union and Labour Relations (Consolidation) Act 1992 (s.188:1), employers must consult collectively where they propose to dismiss as redundant 20 or more employees at one ‘establishment’ within a period of 90 days or less. The judgment in the Woolworths case found that businesses making redundancies across a number of different branches should count all those redundancies, rather than just the number at each branch, for the purposes of collective consultation. Previously the law has been interpreted to mean that each branch should be treated as a separate ‘establishment’ for the purposes of the collective consultation rules.The case will reach the appeals court in January. Unless the ruling is reversed,

HR professionals will find the number of collective consultation processes they run increases.

Conciliation

Other employment tribunal reforms take effect in 2014 in the wake of the introduction of claim fees in 2013. Discrimination questionnaires are being abolished in April. These allow employees to obtain documents from an employer to support a discrimination claim at an earlier stage than would be possible

through the tribunal disclosure process. They are estimated to take up between four to six hours of business time and have been a source of frustration for employers.Unfortunately, the time saving their abolition ushers in is likely to be short lived as from April all claims will be subject to a mandatory period (provisionally set at one month) during which Acas will attempt conciliation between the parties. During this period, the time limit for bringing the claim (generally three months) will

Original story found here: http://www.cipd.co.uk/pm/peoplemanage-ment/b/weblog/archive/2014/01/06/key-employment-law-changes-in-2014.aspx

Key employment law changes in 2014New rules on transfers, collective consultation and pre-claim conciliation will affect HR practice in the year ahead

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effectively be suspended. Claimants will only be able to continue with their claim once Acas has issued a certificate saying that a settlement is unlikely at this stage.For businesses this is likely to mean that cases take longer to get to tribunal, so HR professionals will need to be proactive in managing them. They should ensure any employees involved in making contentious terminations are asked to remain available to assist with potential litigation if subsequently leaving the business themselves. They should also remind the business of what their disclosure obligations will be if a claim reaches a tribunal and ensure that relevant documents are not deleted.

Planning for 2015

Businesses should also be considering the best steps to take in relation to the introduction of increased family friendly rights. Couples will be able to share up to 50 weeks’ maternity leave from next year, but we have little detail around how this will work in practice. HR professionals are going to be confronted with issues such as how holiday will accrue and be apportioned between couples; and whether those part way through maternity leave when changes are introduced can still opt to come back early, with their partner taking some of their leave.

Either way, most businesses will need to plan for a complete overhaul of these policies and practices over the next 18 months or so.

There are inadequate arrangements in place to act as a backup system in case Real Time Information (RTI) fails, according to a group of MPs.

RTI ‘needs improved disaster recovery system’

The Public Accounts Committee (PAC) has revealed its concerns with regards to RTI, which focus mainly around the issue that benefit claimants could lose out on

their welfare payments if it goes down.

PAC chairperson Margaret Hodge noted: “The successful implementation of Universal Credit depends on RTI continuing to work properly but the system does not have full disaster recovery arrangements.”

Ms Hodge added that any failures could have “serious consequences” for individuals relying on their payments, although she did comment that the implementation of RTI so far has been “encouraging overall”.

She also noted that it was “of concern” that HM Revenue & Customs (HMRC) was planning on fining companies that fail to remain compliant from April 2014 onwards.

However, businesses concerned with their compliance and the prospect of subsequent fines can always invest in payroll software to ensure that they do not fall foul of any of the new guidelines.

The PAC has since recommended that HMRC increases its efforts to build an effective disaster recovery plan, while ensuring that small and medium-sized businesses are supported during the transition to RTI.

In response, the body said that it believes it has already “struck the right balance” to build a resilient yet cost-effective system. It gave the example that the failure of a computer server would not cause the whole service to shut down and that if the fault was more serious, then submissions could be queued until normal operations resume.

Last month, work and pensions secretary Iain Duncan Smith admitted to Sky News that the Universal Credit system would not be fully up and running by its 2017 deadline, resulting in up to 700,000 people not being included from the start.

Original story found here:http://www.snowdropkcs.co.uk/payroll_software_news_detail.aspx?aid=4274

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Now the question is “Whatan employee and employer

must do and should remember in filing annual returns?” Let us understand Singapore’s Income Tax Structure first.

Overview

Singapore’s Personal Income Tax structure is one of the friendliest and most competitive in the world. The tax year is from 1st January to 31st December in each calendar year and income is assessed on a preceding calendar year basis, ending 31st December. Singapore Tax adopts progressive personal tax rates corresponding to an individual’s amount of income.The amount of income tax that an individual has to pay depends on tax residency. The taxes for residents are different from non-residents.Employees will be treated as a tax resident for a particular Year of Assessment (YA) if he/she belongs to the following category:

• a Singaporean; or

• a Singapore PermanentResident (SPR) if he/she haveestablished a permanenthome in Singapore; or

• a Foreigner who stayed/workedin Singapore for 183 days ormore in previous year (excludesdirector of a company).

As a foreigner, tax residency depends on the amount of time he/she have been employed in Singapore:

• If the stay in Singapore hasbeen for at least 183 daysthe Foreigner is consideredas resident thus incomewill be taxed at progressiveresident rates, and canalso claim tax reliefs.

• If the foreigner has lived andworked in Singapore for lessthan 183 days, but more than60, then income is subjectto tax at applicable rates toSingapore residents or 15percent, whichever one is more.No tax reliefs can be claimed.

Year EndSingapore:

1When Calendar year comes to an end or Fiscal year for that matter, it would also mean the time to file income tax annual returns, account reconciliation and other related financial aspects of the company.

Employee Responsibility

It is mandatory under law to file annual personal tax returns to IRAS by 15th April of every year. IRAS diligently enforces the requirements relating to the filing of the personal tax. If tax return is not filed by the 15th April deadline, IRAS may raise estimated assessment. Tax Payer (Employee) can usually expect to receive the income tax bills from May to August. Everyone must comply to avoid paying fines and/or court prosecution.

An individual may pay tax due for the assessment year in one lump sum within one month after the issuance of a tax assessment. Alternatively, the tax may be paid in instalments, up to a maximum of 12 per year.

Year-end payroll processing can be a complicated task; there are many details to be accounted for. But through planning, adept knowledge and accurate processing of year-end activities you can kick off the New Year with a bang.

By Joan Maniego and Monaliza Ramos

Acrede

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Workplace safety and health incident reporting regulations changed

Singapore:

2

With effect from 6 January 2014 (Monday), employers have to report to the

Ministry of Manpower (MOM) all accidents which render their employees unfit for work for more than three days, regardless of whether these were consecutive days. Employers will also have to report all work-related traffic accidents involving their employees under the Workplace Safety and Health (Incident Reporting) Regulations.

Changes to the reporting requirements:

Employers now have to report all accidents which render their employees unfit for work for more than three days, regardless of whether these were consecutive days. These accidents must be reported to MOM within 10 calendar days from the fourth day of medical leave. This is to discourage the practice of breaking up medical leave unnecessarily, which could affect employees’ recovery process and the integrity of our incident reporting framework. More information on the reporting requirements is in Annex A.

Employers of employees involved in work-related traffic accidents will be required to report such accidents to the Commissioner for Workplace Safety and Health. This is to emphasise the employer’s duty under the WSH Act to manage traffic safety and better track work-related traffic accidents.

MOM had received feedback from the industry that errant employers could bypass the previous Workplace Safety and Health (WSH) reporting requirements by breaking up medical leave of injured employees, so that it is not more than three consecutive days.

With the amended reporting requirements, if the injury sustained by the employee resulted in a total of more than three days’ medical leave, such accidents must be reported. This is so that MOM’s reporting database reflects an accurate picture of the number of WSH incidents, so that engagement and enforcement actions can be appropriately calibrated.

“The errant practices can obscure the actual severity of the accidents that have occurred,

and prevent us from getting an accurate picture of the reality on the ground,” says MOM.

In addition, with the extension of the WSH Act in September 2011 to cover all workplaces, there have been efforts made to improve work-related traffic safety. In March 2013, following a spate of high-profile work-related traffic accidents, MOM had considered making such accidents reportable under the Workplace Safety and Health (Incident Reporting) Regulations.

“This would send a clear signal that that employers need to better manage traffic safety,” says MOM.

Any employer who fails to make an incident report as required by law is liable to be:

Fined up to $5,000 for a first-time offence; or

Fined up to $10,000 and/or jailed up to six months for subsequent offences.

Employers can email MOM at [email protected] if they require further clarifications.

Original story found here:http://www.hrmasia.com/news/latest-news/wsh-incident-reporting-requirements-changed/182817/

As for the employer, they must prepare Form IR8A (to declare remuneration of all employees) and Appendix 8A (for payments of benefits-in-kind), Appendix 8B (gains from Employee Stock Option) or Form IR8S (if excess CPF payments were made) for all employees by 1st March each year. Employers participating in the Auto Inclusion Scheme1, need not issue Form IR8A to their employees. However it is advised to provide a copy for their personal record.

Employer Responsibility

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The Employer Mandate, originally scheduled to take effect in 2014 has been delayed until 2015: The Affordable Care Act does not require businesses to provide health benefits to their employees, however, if a large employer (50 or more full-time equivalents) chooses not to offer a health plan or chooses to offer a plan that does not meet the minimum requirements of the law (affordable health plan), then the large employer is subject to the segment of the law which establishes employer penalties. In general, there are 2 penalties: A $2,000 per employee (minus the first 30) penalty for a large employer not offering coverage; and for employers who offer coverage which does not meet the minimum requirements of the law, a $3,000 penalty for any employee who receives subsidized coverage through the Exchange. Enforcement of the penalty was originally scheduled to begin in January 2014, however, in July 2013 the Agencies announced a one year delay, giving employers a reprieve until January 2015.

Information Reporting, originally scheduled to take effect in 2014 has been delayed until 2015: The Agencies also delayed the segments of the law related to information reporting. Employers and other reporting entities are encouraged to voluntarily comply with the reporting rules during 2014, however, future guidance will detail the requirements which are now scheduled to be due in 2015.

Individual Mandate: Effective 1/1/14 the government will require most Americans to have health insurance. Individuals, including children, who don’t have coverage and who are not in one of the groups that is an exception to the rule, will pay a penalty. In 2014, the penalty is $95 or 1 percent of taxable income, whichever is greater. In 2015, the penalty will be $325 or 2 percent of taxable income, and in 2016 the penalty will be $695 or

2.5 percent of taxable income. Each year after 2016, the government will publicize the penalty based on a cost-of-living adjustment. To help the uninsured meet the cost of mandated insurance, the government will offer premium credits and cost sharing subsidies to people who meet certain income guidelines and if they enroll in one of the new state-run insurance exchanges and if their employer does not offer them affordable coverage.

Please note: the ACA may continue to change and evolve over the coming months and years, so be sure to consult with your insurance professional as needed.

Original story found here:http://www.cpehr.com/california-labor-laws-2014

Health Care Reform Updates – 2014 & 2015

Following is an overview of the most important updates relating to the Affordable Care Act in the coming two years.

United States:

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Employer Notice Requirement (Market Place Notice):

Effective 10/1/13 employers were required to provide a Market Place Notice to all employees. This is a continuing requirement. New employees must receive the notice within 14 days of their date-of-hire. CPEhr manages this requirement for employees on CPEhr health plans.

Eliminating Annual Limits on Insurance Coverage: Effective 1/1/14 the law prohibits new plans and existing group plans from imposing annual dollar limits on the amount of coverage an individual may receive.Ensuring Coverage for Individuals Participating in Clinical Trials: Effective 1/1/14 Insurers will be prohibited from dropping or limiting coverage because an individual chooses to participate in a clinical trial. Applies to all clinical trials that treat cancer or other life-threatening diseasesCoverage Documentation: Effective 1/1/14 health plans must provide coverage documentation to both covered individuals and the IRS

Health Care Reform Updates – 2014 & 2015

Establishing Affordable Insurance Exchanges:The law creates a state-based Market Place, also called Health Benefit Exchanges and Small Business Health Options Program (SHOP) Exchanges, administered by a governmental agency or non-profit organization, through which individuals and small businesses can purchase qualified coverage. Exchanges began taking applications in October 2013 for a January 1, 2014 effective date.

Health Insurance Premium and Cost Sharing Subsidies:Effective 1/1/14 the new Market Place also called the Exchange, will administer tax credits and cost sharing subsidies to qualifying individuals who purchase coverage through the Exchange. Eligibility is based on household income and size of the individuals household.

Increased Access to Medicaid: States that implement that ACA’s medicaid expansion will gain a population of people who will become newly eligible for medicaid effective 1/1/14. Starting 1/1/14, coverage for the newly eligible adults will be fully funded by the federal government for three years. It will phase down to 90% by 2020.

Summary of health care reform provisions for small employers with small group health plansEmployers offering coverage through a Small Group health plan have a number of small-group specific provisions to contend with, some of which are listed below:

Essential Health Benefits:Creates an essential health benefits package that provides a comprehensive set of services and creates four categories of plans to be offered through the Exchanges, and in the individual and small group markets.

Guaranteed Availability of Insurance: Requires guarantee issue and renewability of health insurance regardless of health and allows rating variation based only on age (limited to a 3 to 1 ratio), geographic area, family composition, and tobacco use (limited to 1.5. to 1 ratio) in the individual and the small group market and the Exchanges.

Increasing the Small Business Tax Credit:The law implements the second phase of the small business tax credit for qualified small businesses and small non-profit organizations. In this phase, the credit is up to 50% of the employer’s contribution to provide health insurance for employees. There is also up to a 35% credit for small non-profit organizations. Applies only if coverage is purchased through the Exchange.

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Many employers decide not to contest a departing employee’s request for unemployment compensation (UC) or flat out ignore requests from UC agencies to provide info about a former employee’s departure. In a UC agency’s eyes, these are considered “non-responses,” and they won’t fly anymore.

Many times these non-responses lead to individuals receiving UC who shouldn’t be eligible because

the agency involved couldn’t make an accurate determination of eligibility.

These responses (or lack thereof) are usually the result of an employer separation agreement in which an employer agrees not to contest a departing employee’s request for unemployment benefits in exchange for some form of legal release.

Now, however, states that aggressively enforce a new law — the Unemployment Insurance Integrity Act — will not allow UC agencies’ requests for info to go unanswered.

The law was signed by President Obama as part of the Trade Adjustment Assistance Extension Act of 2011 and is now a subsection of the Federal Unemployment Tax Act. Its purpose was to strengthen the “integrity” of the unemployment compensation (UC) system by ensuring that individuals who shouldn’t qualify for UC don’t receive it simply because their former employers agreed not to contest their benefits claims.

It required states to protect UC integrity by adopting legislation that implements the provisions of the law by Oct. 21, 2013.

Non-compliance penalties

The law’s provisions require states to punish employers that show a “pattern” of not responding “adequately” or in a “timely” fashion to UC agency information requests regarding unemployment claims.

Some of the punishments states have implemented for not complying with the new notice request rules include:

• Steep civil penalties

• Criminal penalties

• Charging employers’ unemploymentinsurance accounts for benefits paidout to claimants who are eventuallydisqualified for benefits, and

• Hurting employers’ experience ratings,which results in unemploymentinsurance tax rate increases.

Employers are just now starting to feel the effects. Essentially, companies will now be required to provide at least some detail regarding former employees’ unemployment benefits eligibility — or face stiff consequences.

States have been granted the ability to decide for themselves what amounts to “timely” or “accurate” responses to UC info requests, so the requirements vary from state to state. In some cases, states are requesting more detailed info about employees’ departures than they had in the past.

Expert advice to employers

So what should employers do now? Some legal experts have weighed in.Amanda Haverstick, an employment law attorney at Reed Smith LLP, and Forbes.com contributor, said that employers who want to continue to use separation agreements in which they agree not to contest a departing employee’s UC eligibility should, at a minimum:marry such language with express assurances that you will respond “truthfully and completely” to any UC agency information request. (Forbes)

This, she says, will allow employers to both comply with their state’s requirements to provide UC eligibility info in a timely and accurate manner and still not violate their agreements not to contest individuals’ claims for UC.

Original story found here:http://www.hrmorning.com/new-unemployment-comp-rules-hr-must-be-ready-for/

New unemployment comp rules HR must be ready for

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Employment law attorneys at the firm Proskauer also had these suggestions for employers:

• Appoint a group of individuals whowill be responsible for completingUC claim and info forms

• Train applicable staffers to identify UCforms and direct them to the appropriatepersonnel for completion

• Appoint an individual to documentthe info communicated toa departing employee

• Consult with legal counsel aboutagreements not to contest UCeligibility, since these agreementsmay face increased scrutiny, and

• Make sure any third-party administratorsyou use to complete UC forms are awareof your state’s new laws in this area andare able to meet all the requirements.

The Back-Story Throughout the second half of 2013, the California WCIRB (Workers’ Compensation Insurance Rating Bureau) had fluctuated in its recommended increases for 2014 insurance rates. In August, it was expected that increase would range between 4% – 5%. However, that number continued to rise, reaching 7.8% in September, and peaking at 9.6% in October. The final increase approved by Commissioner Jones settled at 7.6%.

The Bureau explained that the amended filing is to cover expected higher costs from California’s new Medicare-style payment system for physicians reimbursements. This new system, which was mandated by last year’s workers’ compensation reforms, and which was developed and adopted by the Division of Workers’ Compensation (DWC), is known as a resource-based relative value scale (RBRVS) system.

What is RBRVS?Briefly, in the RBRVS system, payments for medical services are determined by the estimated costs needed to provide them. The cost of providing each service is divided into three components: practice expense, physician work, and professional liability insurance. Payments for services are calculated by multiplying the total combined costs of the service by a conversion factor, and adjusted for geographical differences in various resource costs.

On September 24, 2013, a new Physician Fee Schedule was filed with the Secretary of State and will be published in the California Code of Regulations, effective January 1, 2014. The changes and reforms in payment reimbursements were mandated in Senate Bill (SB) 863. While the new payment system will be phased in over the next four years, the Bureau estimates that two-thirds of all medical payments to paid on 2014 policies will incur the full impact of the change.

Dr. Rupali Das, Executive Medical Director of the Division of Workers’ Compensation (DWC) states:

“Adopting a payment schedule based on the RBRVS will increase

fairness in reimbursement across the spectrum of medical services, help to reduce disputes regarding the reasonable value of medical services, and improve injured workers’ access to the most needed medical services.”

Based on actuarial projections, the Bureau estimates that the new system will increase physician costs by more than seventy percent for new 2014 policies.

While the WCIRB recommendations are heavily considered, California Insurance Commissioner Dave Jones was not required to follow them. He could have accepted, rejected or modified the Bureau’s proposed rate increases. Furthermore, while the state’s workers’ compensation insurers typically follow the commissioner’s guidance, they too are not required to do so.

Ultimately, the Insurance Commissioner’s approved increase of 7.6% fell short of the Bureau’s recommendation of 9.6%. So while California employers may be disheartened by the prospect of increased workers’ compensation rates in 2014, they should be reassured that things could have been far worse.

California Workers’ compensation rates in 2014

United States:

Following months of speculation and anticipation, California Insurance Commissioner Dave Jones officially approved a 7.6% increase for California workers’ compensation pure premium rates in 2014.

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Publishing the SFA’s end of year statement, chairman A.J. Noonan claimed that with the “right

environment” small businesses could generate 20,000 Irish jobs in 2014.

There are currently around 200,000 small firms operating in the country. They employ 655,000 people, and an estimated 13,000 new businesses are set up each year.

According to Noonan: “Entrepreneurship is alive and well, but must be nurtured and developed with a renewed focus from both agencies and government.”This is where changes to the tax system should come in. Ireland has one of the highest marginal tax rates in the Organization for Economic Cooperation and Development (OECD), at 55 percent. The OECD average stands at just 36 percent.

For Noonan, such high rates present “an obstacle for entrepreneurs and business start ups.” The social welfare system also creates problems, by failing to adequately incentivize a return to work before individuals lapse into long-term unemployment.

Noonan did not specify what tax reforms he wants to see implemented, but did propose a three point plan. It would make small firms and job creation the “leit motif” of Government policy, increase

credit availability, and improve access to public procurement contracts.

He added: “If the Government puts the right policies in place, this vital sector will drive growth in the wider economy, more so than any other. The small business sector given the right economic conditions will generate the growth needed to create jobs and overcome our debt burden. Small businesses can lead the way in helping Ireland to recover faster and stronger.”

Last month, the Government unveiled its medium term economic strategy, designed to “point the way to a stable and prosperous future” in the wake of Ireland’s bailout exit. It hints that the Government may be able to achieve a combination of tax cuts and increased spending if revenue growth is reasonable. It will preserve the competitiveness of the tax regime, while continuing to fund tax incentives through the review and elimination or restriction of “overly generous, poorly targeted or otherwise unaffordable tax reliefs.”

Ireland needs a tax system that rewards work and entrepreneurship, the Small Firms Association (SFA) has said.

by Jason Gorringe, Tax-News.com

Entrepreneurship is alive and well, but must be nurtured and developed with a renewed focus from both agencies and government

Irish SMEs set out 2014 wish list

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There is no doubt that design is the foundation of excellence. I remember when I sat in a board meeting in Kensington in 1996 and my goodness how the world

has changed since then. At this meeting I was asked if I knew of an international payroll solution and the company had asked ADP, Ceridian and all the major accountancy firms for a potential solution for their global payroll problems of:

• compliance• control• visibility• integration

At that time the internet was in its infancy. So I got on a plane, worked with partners whom I knew were trusted CPA firms, cleaned up the payrolls and put together a password protected spreadsheet that consolidated the gross to net by employee, by cost centre, by country, by region and by group. The HR Director had this on her desk by the 3rd of every month, printed and sent in hard copy as my internal network was the only secure one.

How times have changed. In 1999 I began planning the production of this in Software as a Service or as an Application Service Provider - “ASP” as it was then known.

The rest is history, I built Patersons into a successful global business, but that part of my life ended. Now I can reflect on how opportune it was, to have a blank sheet of paper and to be able to make a fresh start. I did not want to carry forward any of my past as it was tainted and there was a new world of modern programming languages out there, a business model was now established I could reflect on. Freedom and hindsight is a wonderful thing. I really do know how Steve Jobs felt and where he got his inspiration that changed the market irrevocably.

Roll time forward and we are in 2014.

So here we are. This article is a reflection on the market and the changes I think are going on. Now what I want to talk about are a number of issues that challenge software developers, problems that global leaders have to deal with and then why it’s so exciting to lead this market.

So this year, I did not make a NewYear’s resolution, I just carried on with my vision and also spent

some time walking the beautiful coast of Jersey thinking about what we as a business had to deliver in 2014 and what I would write in the 4th edition of our magazine… With my dog Molly, of course.

This Changing WorldI am feeling young… but I should be feeling much older given my years of experience in this market… I often reflect on how the International Payroll market started and smile as I watch our competitors follow Acrede’s innovation and thought leadership and this continues to fill me with energy. It has really been a great last four years. A change of company and a nice blank sheet of paper allowed me to think of what I wanted to do.

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Karen Paterson MBA, Dip BA ACIB ATT

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The Changing Face of Organisations

I wrote a blog a few weeks ago on how the dynamics of organisations are changing. We no longer have to deal with traditional hierarchical organisational structures and the matrix organisation was invented decades ago to deal with this. Most senior executives have then consumed huge amounts of time modelling their business into a matrix structure. Now I propose this model no longer works. Real time information, social media, IMS and email means that we connect within organisations without hierarchy easily and seamlessly. An Organisational structure has to work in a dynamic virtual environment and this also contributes to continual improvement and innovation. If something does not work in a business process, share it, make suggestions – in an open forum. CEO’s need to listen to their people but organisations need to control the sharing of information. This is why we have also added a short note on Data Protection and privacy. We will be expanding this thought leadership in 2014 as to how it is not just a data management issue but an organisation’s responsibility on managing not just workforce data, but how they control information about their business via social media.

Multi-dimensional organisations also conflict with the traditional way of how a reporting structure works, namely what employee information can be displayed to whom and how this affects data and privacy laws. Overlay that with technology architecture and it’s interesting – one of my best eureka moments was solving this conundrum.

When you have a multi-dimensional organisation (MDO) and you

are creating an innovative environment, values are key. These are both corporate and personal values. The freedom that is needed in an MDO requires values to drive it. If information is free, people need to respect it. If information is open then the access rights and display of that information needs to be appropriate for the user or that users place in an organisation.

Does an employer own an employee’s access to Facebook or LinkedIn? The answer is no we don’t and we do not have any rights to such data unless it breaches a contract, privacy policy or data protection. Can we police it? Probably not , therefore organisations need to embed values.

Turning to visibility and control, people in an organisation need to agree with what they need to see or look at.

I spent my time walking the beautiful coast of Jersey thinking about what we as a business had to deliver... with my dog Molly of course.

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Many IT projects get slowed down or side tracked by reporting requirements that are there under legacy systems that nobody uses. Management by exception or KPI’s is a long known discipline, but I see few organisational environments following or developing new best practice.

No matter which ways or what ways, MDO’s bring challenges in all aspects of operational management as well as data privacy.

The New World is a Virtual World

The internet has changed the way we work (and of course many other functions such as retail). The question is do we need Real Estate anymore? Or in fact any face to face corporate community, well the answer is yes we do. Location, talent and cost of real estate is very important to corporate efficiency and cementing culture needs a home – it just does not need everyone to be sat behind a desk in one place any more. Here at Acrede, we run our entire back office on our own software over the cloud, supported by Cloud Voice over IP (VOIP) and instant messaging (ISM).

This changes the way that employees work, as well as

being hugely efficient, it envelopes homeworking and significantly reduces costs. This all allows us to deliver a better, more flexible interactive real-time service to our clients. Big corporates such as IBM have been embracing this work practice for some time but the advent of cloud technology has made the “global network” and infrastructure and MDO more affordable for smaller businesses. This in turn also allows business considering or implementing shared services to be more innovative and dynamic in approach and to consider pure SaaS as a solution rather than outsourcing HR & Payroll, or a mixture of both. This is a trend I have mentioned in previous articles. At Acrede we also practice what we preach – our international business is run 100% on our own technology. I do not have a server in any of our offices; it is all on the cloud.

Do all workers need to have email and/or access to computers?

Well actually the answer is no - particularly blue collar workers. This type of worker tends to be more reliant on mobile devices. Therefore transactional HR and payroll data such as leave management being available on mobile devices is very important to cater for this class of employee. If the business is seeking to migrate everyone to electronic payslips, encrypted SMS payslips are a viable alternative. The savings on postage and printing costs to the organisation can be significant and in addition, the saving of the planet via electronic payslips is massive. Governments should be endorsing this. We calculate that by using cloud technology and by having no printed payslips (unless the client insists on them), there is somewhere near an 80% energy saving for our business.

Impact on compliance

We are in an ever-changing world of compliance. The required controls have not changed but the method of policing them has and the end result of this is a much greater emphasis on values. Information security has to be embedded in an organisation. With cloud technology and services such as AWS, there is much more reliance on contractual agreements and subrogated responsibilities. Amazon does not allow audits on its data centres nor does it even disclose their location. The delegation of responsibilities and controls therefore sit at access key level. Infrastructure is key and agreed levels of service have to flow down through multiple contracts if a product is being delivered over the cloud. I have listened to many contractual negotiations where this has been overlooked.

Impact on multi - cultural management

An MDO whilst organisationally effective and facilitates open communication platforms, it does expose itself much more to a reliance on shared values that may not transpose themselves into a multi-dimensional environment. Again this puts much more emphasis on creating the organisational culture and values. Hofstede (one of my favourite academic references) explored this to a great extent however the world has moved on hugely since Hofstede did his research. I would advocate that his research results need updating. Over the last 7 years English has been the corporate language of choice. One of my clients has enjoyed huge growth on the back of this. Our new generation has to speak English, and Mandarin is also becoming a “must have language”. Spanish is also very important because this and alongside Portuguese, is the base of LATAM. Mexico is “MINT” country. The other mints are Turkey, Egypt and Nigeria. So should we be teaching these languages and most importantly those countries’ cultural values in our schools internationally?

Impact on process

Process needs to adapt to the MDO. Workflows can no longer be a traditional step by step BPM (business process management). Good BPM systems of course facilitate the creation of multiple streamlines, but they still have to accommodate not a one dimensional hand off of a process, but a multi - dimensional input of information that has a different aspect to viewing data, approving it and reporting on it. Over the cloud, respecting data protection and privacy is interesting and at Acrede, we have cracked this, but it is an ever evolving target.

Game Changes

Technology is a game changer, sometimes it changes the way we do business and sometimes it facilitates it. Social media has changed the way we do many things, the google algorithm has too. Microsoft, as much as we curse it when we debug there latest versions, changed the way we work. We believe what we have done with Cloud HR and Payroll will do the same.2104 is going to be an interesting year…

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Technology is a game changer, sometimes it changes the way we do business and sometimes it facilitates it.

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OREGON

WASHINGTON

ARIZONA

COLORADO

MONTANA

MISSOURI VERMONT

CONNECTICUT

NEW JERSEY

NEW YORK

RHODE ISLAND

OHIO

FLORIDA

CALIFORNIA

While much of the attention on minimum wages has focused on Congressional proposals to raise the federal minimum wage to $9.80 per hour, with the coming of the New Year company owners and human resources departments must be attentive to minimum wage increases quietly becoming effective in state and local jurisdictions.

Most of these increases are baked into laws or constitutional provisions in 10 states mandating

yearly minimum wage assessments tied to increases in the Consumer Price Index (CPI). Others will be imposed because of legislation enacted in 2013. Regardless of the basis for the increase, employers having operations in any of the states discussed below must plan to increase minimum wages effective January 1, except in California where wage changes take place on July 1, 2014.

United States: Fourteen states to hike the minimum wage In 2014

The statewide minimum wage is based on the CPI. It will increase

on January 1 to $8.00 per hour from the current $7.78 per hour

level. Tipped employees must be increased by 22 cents, to $4.98.

On January 1, 2014, Oregon’s minimum wage for all workers, whether or not tipped, will increase from $8.95 to $9.10 per hour because of an increase in the CPI.

The statewide minimum wage for all employees will increase

by 10 cents to $7.90 per hour.

On January 1, 2014, the State of Washington’s minimum wage for all workers, whether or not tipped, will increase from $9.19 to $9.32 per hour because of an increase in the CPI.

Legislation signed by Governor Brown this year will raise the minimum wage to $9.00 per hour on January 1, 2014. That same legislation will move the state minimum wage to $10.00 per hour on January 1, 2016. Employers with workers in San Francisco and San Jose should know that the existing higher citywide minimum wages also will increase on January 1. Employees in San Francisco must be paid $10.74 per hour, while those working in San Jose will have a minimum wage of $10.15 per hour. Unlike most states, California law does not permit tipped employees to be paid a lower wage.

The minimum wage is tied to the CPI and will increase from $7.80 to $7.90 per hour. The

tipped workers’ minimum is increasing by the same

amount, to $4.90 per hour.Original story found here:http://www.mondaq.com/united-states/x/284442/employee+rights+labour+re-lations/Fourteen+States+to+Hike+Mini-mum+Wage+in+2014

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OREGON

WASHINGTON

ARIZONA

COLORADO

MONTANA

MISSOURI VERMONT

CONNECTICUT

NEW JERSEY

NEW YORK

RHODE ISLAND

OHIO

FLORIDA

CALIFORNIA

The minimum wage is tied to the CPA and will increase from $7.35 to $7.50 per hour on January 1, 2014, except for tipped employees, who will have an increase from $3.68 to $3.75 per hour.

Governor Malloy signed legislation in 2013 that raises the minimum wage from $8.00 per hour to $8.70 per hour on January 1, 2014. That rate will increase again on January 1, 2015 to $9.00 per hour. The minimum wage rates for tipped restaurant and hotel workers will remain at current levels.

Governor Chaffee signed legislation passed in 2013 that increases the minimum wage for all but tipped workers from $7.75 per hour to $8.00 per hour on January 1, 2014. The tipped worker rate will remain at $2.89 per hour.

Under legislation enacted in 2007, Vermont’s minimum wage will increase on January 1 from $8.60 to $8.73 per hour, except for tipped workers, whose rate will increase from $4.17 to $4.23 per hour.

Due to the CPI increase over last year, the minimum wage will increase on January 1 by 14 cents, to $7.93 per hour, and to $4.91 per hour for tipped workers.

Ohio’s minimum wage will move from $7.85 to $7.95 per hour on January 1, 2014 because of an increase in the CPI, but for tipped workers the rate will increase from $3.93 to $3.98 per hour.

Legislation passed in 2013 and signed by Governor Christie will increase the statewide minimum wage from $7.25 to $8.25 per hour on January 1, 2014. The rate for tipped employees will remain at $2.13 per hour.

Governor Cuomo approved legislation passed in 2013 that raised the statewide minimum wage from $7.25 to $8.00 per hour on December 1, 2013. This does not affect lower wage rates for tipped food service workers and for certain other tipped employees. The same New York law signed in 2013 will raise New York’s minimum wage for non-tipped workers again on December 1, 2014 to $8.75 per hour, and a third time on December 1, 2015 to $9.00 per hour.

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As the readers will appreciate, data protection and privacy legislation is being enacted in more and more jurisdictions. It is a growth industry and the data protection bodies are unafraid to use their statutory

powers. Gone are the days when one could rely on ethics alone as various organisations, especially in the consumer market, have stretched the boundaries of what is acceptable conduct and the authorities have reacted over the past few decades.

In the European Union, the national data protection laws derive from the baseline of the Data Protection Directive (95/46/EC) which sets a common standard from which the member countries have enacted their own laws such as the UK Data Protection Act or the German BDSG which give effect to the directive. Besides enacting the directive, additional local requirements can be imposed. Other jurisdictions have their own bespoke data protection/privacy legislation which may take the form of a single key piece of legislation or be derived from a series of multiple laws. A good example of the latter is the USA where there is a mixture of Federal and State laws. The Federal laws cover specific areas so any service provider and its customer need to be aware of these.

The globalisation of business in the computer age has made the transfer of data much easier than it was hitherto when there were neither data protection laws nor modern computing systems. Indeed the technology revolution has driven the prompt enactment of data protection and data privacy. Outside the business environment we are familiar with the concept of overseas call centres handling customer matters for banks and utility companies. Matters of national security and intrusion have come to the fore and are the subject of a different debate, but the recent Edward Snowden disclosures have prompted further concerns, some of which may impact the business community.

Using the EU example, it has been stated by EU Justice Commissioner Viviane Reding that “…data protection is made in Europe”. The EU Commission’s draft General Data Protection Regulation has been subject to over 3000 amendments and member states are yet to reach a consensus. The proposed “one stop shop” whereby the data protection authorities in the country of the organisation’s “main establishment” could create human rights issues according to the legal services counsel for the Council of Ministers.

For any organisation with a presence in multiple jurisdictions, careful consideration has to be given to the privacy laws in those countries. Data protection and privacy is very well understood by some, especially the mature organisations, but there are others whose comprehension is less, and this is usually either attributable to the fact that certain decision makers are operating in jurisdictions outside countries with tight data protection laws or there has been a period of rapid expansion and the focus has been on other matters.

The impact of Data Protection and Data Privacy Legislation on managing a global workforce and a GlobalHR/Payroll system

Philip Paterson - Barrister, LLB Hons Head of Commercial & Legal Services Acrede

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Operating across borders causes angst and administrative worries in some quarters. Given the EU probably has the toughest data protection laws, the handling of personal data attracts significant attention and is real cause for consideration. For example, the EU national data protection authorities have the power to impose significant fines on those who have transgressed the law. For example, Google has recently been fined €150,000 by CNIL (the French data protection authority) for failings identified in its privacy policy and to publish a copy of its order on its website for 48 hours. CNIL had previously announced that it had formed a taskforce with the UK Information Commissioner’s Office and other data protection authorities in Germany, Italy, the Netherlands and Spain to look separately at Google. The Spanish authorities fined Google €900,000. Google had also attracted the attention of the EU Article 29 Working Party. The monetary amount penalty may not seem large but the attention attracted by Google would have been unwanted and a distraction. There are many other cases where organisations from both the public and private sectors have been fined.

Besides having proper privacy policies in place, organisations must be aware of the rules governing the export of data. The typical export of data includes data communicated via electronic systems and data feeds, including storage outside the relevant jurisdiction, people or organisations being able to access that data and “view” the use of that data by third parties. This could include transferring data to another division or head office, or by means of outsourcing.

It is vital for organisations to understand who the data controller is, who is a processor and what those terms mean in practice, because the nature of the engagement can affect the interpretation. In the case of a service provider offering payroll services, the customer is ordinarily the controller and the service provider is the processor. There is a relationship between two or more parties which involves

Organisations must be aware of the rules governing the export of data

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the processing of data. The customer is the one giving the instructions and determines what the data can be used for. It is the responsibility of the service provider to ensure instructions are complied with as directed by the data processor. Therefore both parties must clearly determine roles and responsibilities. It is also incumbent on the service provider to understand the customer’s business model because ignorance is no excuse.

Experience has taught the author that there are many people who do not understand what constitutes data processing. Using the global market example, data in transit via the internet is not being processed because it is in transit in the same way a letter in the post is. However, when it is being viewed or manipulated it is being processed. Therefore consideration must be given as to where such activities are taking place and a responsible service provider ensures that this is properly addressed via its data protection and privacy policies. Whether or not a customer organisation or supplier is processing the data too, the relevant governance must be complied so it is incumbent on the service provider to comply with the relevant laws and understand its customer.

It is unsafe to assume that export requirements apply to EU data only because jurisdictions such as Australia and Hong Kong also have clearly stated requirements. Using the EU example again for the normal course of business, the eight data protection principles say data may be exported if:

• the data subject has consented to the transfer;

• the transfer is necessary for the performance of thecontract between the data subject and data controller;

• the transfer is necessary for the conclusion of thecontract between the data subject and data controller;

• the transfer is necessary or legally required on thebasis of important public interest grounds;

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Using the EU again, the methods permitted are, in outline:

• transfers to countries with “adequate” safeguards;

• transfers to US companies which have self-certified under the “Safe Harbor”;

• data transfers using the EU Commissionapproved model data transfer agreement;

• transfers subject to binding corporate rules;

• transfers pursuant to an approved private contract; and

• in some jurisdictions, companies whichhave self-assessed their adequacy.

This article has concentrated on data protection and privacy laws based on the EU model. However, there are multiple jurisdictions outside the EU who have data protection and privacy laws which must be considered. In addition, payroll providers need to be aware of regulatory requirements imposed by quasi government bodies and to ensure that their model is compliant with those rules, if applicable.

Model agreements are very important. Non EU states often adopt this legislation as it is considered best practice but there is a formal internal adoption process that needs to be followed.One simple compliance procedure is to get the written authority from all employees to share data where needed in the interests of the business – oh and don’t abuse that and make sure you data security and information security is properly handled

So in summary beware, be educated and embed your information security in your business.

• the transfer is necessary in connection with the exercise ofthe defence of legal proceedings/obtaining legal advice; and

• the transfer is necessary to protect thevital interests of the data subject.

In the normal business environment, the first three bullet points are of particular interest, especially as the data subject wants to be paid. However, just because a worker wants to be paid, one should not assume that “anything goes”. That would be a dangerous path to follow. Consent appears to be the key but this can, surprisingly, be impractical. Ordinarily consent must be explicit, informed and, ideally, it should be linked to some form of audit trail. However, some EU states view employee consent as not being entirely voluntary so there are some data protection authorities which have produced guidelines determining when consent can be relied upon for processing activities such as data transfers. This all has to be taken into account.

Readers should be aware that there are also some countries in Europe that require the export of data to be notified to the data protection authorities. In addition, other organisations have workers councils and collective agreements, whereby worker consent is also required before data can be exported. Clearly this is a matter for the exporting organisation, especially if the third country receiving the data does not offer “adequate” protections which meet the standard imposed by the EU. Examples of those countries which do are the USA under the Safe Harbor agreement, Argentina, Australia, Canada, Israel, New Zealand and Switzerland and data can be exported to them subject to any additional conditions which may be required by certain countries. In effect this has created a “greater” EU data protection area.

Again, using the EU benchmark, one needs to determine when data can be exported and identify which countries offer the “adequate” safeguards. In the global market where a customer organisation may well be headquartered in another country and have representation in dozens of other countries, it is important for the data exporter and the service provider to know how to comply with legal requirements.

There are jurisdictions outside of the EU who have data protection and privacy laws which must be considered

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Replacing traditional methods completely

Although social media can make the recruiting process much more efficient, it’s important not to abandon traditional tactics altogether. Social media can tell you a lot about a candidate, but it cannot show you someone’s interpersonal skills, ability to lead a project, or knack for working as a team. Soft skills cannot be truly evaluated on Facebook or LinkedIn page. You need one-on-one conversations to demonstrate them.

Not having a plan

Just like with any other recruitment method, it’s essential to have a strategy. Decide what you want to achieve and establish clear goals. Once you decide your goals, you can devise a detailed strategy to reach them. It’s also important to measure your results along the way. There are a lot of programs out there that allow you to effectively measure social media metrics. Find what works best for you.

Not devoting enough time

At first glance, many recruiters underestimate the amount of time needed to implement a successful social media recruiting strategy. Social networking sites are communities, which means it can take much longer to build relationships with users. You need to devote an appropriate amount of time to find success on social media.

Not targeting your efforts

You can’t just send out a bunch of tweets with job descriptions and expect to see quality results. Just like with any other recruiting method, you cannot be too general. Look for industry-specific online networking communities, like LinkedIn groups, and reach out to them directly. It might be helpful to research how your competitors are using social media, as well, to determine what communities they engage in to connect with candidates.

9 Social MediaRecruitmentMistakesNearly 95 percent of recruiters use or plan to use social media in their recruitment efforts. That’s practically every single recruiter. They’re using LinkedIn, Facebook, Twitter, and more to assess candidates’ experience and cultural fit. Social media is growing rapidly, but doesn’t this mean there are bound to be some mistakes made.

Between the constant changes and hundreds of new methods, there are plenty of ways recruiters can mess up when

using social media. Here are nine social media mistakes you need to avoid making during the hiring process:

1 2 3 4

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Original story found here:http://tech.co/9-social-media-recruitment-mistakes-2014-01

5 6 7 8 9Not targeting passive candidates

One of the biggest benefits of using social media is the opportunity to reach potential candidates who are not actively looking for jobs. Active job seekers will find you through job boards and other channels, but social media will reach more passive job seekers. Use it to build relationships with these people and they’ll remember you when they’re ready for a career change.

Limiting yourself to LinkedIn, Facebook, and Twitter

The big three social media sites are great and very valuable, but you should not limit your strategy to just these channels. There are also many other smaller, niche channels you can use, as well. Look for smaller channels based on your own industry, geographical location, and more to target even more qualified candidates.

Treating all channels as the same

Because there are so many channels you can use, it’s essential you treat them all differently. Each social media site has a different audience and specific social norms, so it’s important to devise a different strategy for each. If you’re not sure how to use a channel, learn before you act. Don’t assume every site works like Facebook, because most don’t.

Disrespecting the rules

Once you decide on some specific communities, it’s important to respect the way they do things. Chances are, you won’t be allowed to spam their group with job listings, so make sure you learn their rules before you engage.

Forming opinions too quickly

Another downfall of many recruiters on social media is judging candidates too quickly. If you rely too heavily on your immediate opinion of a candidate, you might accidentally eliminate one of your top candidates. Social networking profiles are not resumes. A successful recruiting strategy involves multiple methods, so use them.Social media can be a truly valuable resource for recruiters, but it’s important to devise a plan before you jump in. Understand each audience, the community rules, and figure out who to target first. If you can avoid these mistakes, you’ll be much more successful in your social recruiting.

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Indonesian general provision tax law defines an income tax return as a form used to report tax calculations, tax payments, taxable objects or non-taxable

objects, assets and liabilities in accordance with tax provisions. There are two types of tax return: interim tax returns and annual tax returns. Interim tax returns have to be submitted on a monthly basis; however, for eligible tax payers in remote areas, they may submit a combining interim tax return as a special condition. Meanwhile, annual income tax returns have to be submitted once a year. For individual tax payers, annual tax returns have to be submitted no later than 3 months after the end of the tax years (March 31).

Who Pay the Tax?The Indonesian Tax payers are classified into two main categories, resident and non-resident. The income tax law defines resident as 1) any individual who lives in Indonesia, 2) any individual who is present in Indonesia for more than 183 days within any 12 months period, or 3) any individual who intends to residein Indonesia. Meanwhile, non-resident taxpayers are: 1) any individual who does not reside in Indonesia, or 2) any individual who is present in Indonesia for not more than 183 days within a 12 month period, who receives or earns income from Indonesia. Furthermore, individual tax payers can also be categorized on their main active incomes:

• 1. The employee type individual taxpayers (EITs)

The EITs are individuals who earn income through employment, for example, civil servants, private companies’ employees, labours, part-time workers and outsourcing workers. They may earn income from one employer or multiple employers. Based on this, the EITs are grouped further into: a) the EITs who receive income solely from one employer (EITs-OEs) and b) the EITs who receive incomes from more than one employer or other sources (EITS-MEs).

• 2. The self-employed type individual taxpayers (SEITs)

The SEITs are individuals who earn incomes from conducting business and professional activities. It includes sole proprietor businessmen, farmers, and professionals such as doctors, notaries, actuaries, engineers and lawyers.

The main difference of the EITs and the SEITs lies on the tax payment and filing fulfilment method. On monthly basis, the EITs’ employment incomes are calculated and filed by the employer, while the SEITs incomes are taxed through a self-assessment system, though not without exception, several SEITs’ income such as professional services are taxed by the combination of withholding and self-assessment systems.

Indonesia’s Income Tax Return: How to file your tax returns?

Indonesia has a series of progressive sliding tax rates for all categories. Furthermore, as a developing nation, much economic activity is done at the ‘cottage’ level where sales and services taxation are tax exempt.

By Indra BudimanandMuhammad Rijalul Muttaqin

Acrede

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What are the Forms?The forms needed to file tax in Indonesia are called Surat Pemberitahuan (SPT), the forms used to file the employers are:1. Form 1721: this form is used as

the main income tax filing 2. Form 1721-A1: this form is used

as a withholding evidence for employee from the employer.

3. Form 1721-II: this form is used by the employers to file any new employee, leaver, and new employee tax register (this form is attached with form 1721).

4. Form 1721-I: this form is used as a summary of tax withheld by the company (this form is attached with form 1721).

5. Form 1721-T: this form is used to update employees list (this form is attached with form 1721).

As for the individual forms:1. Form 1770: This form is used by

employee as Individual Income tax report to the government (most common form for expatriate).

2. Form 1770 SS: Same as form 1770, the only difference is that this form is used if the tax payers have only one employer and have an annual gross income not more than IDR 60,000,000.

3. Form 1770S: Same as Form 1770 SS, the difference is that this form is used if the tax payers have an annual gross income more than IDR 60,000,000.

4. SSP: This is the tax payment letter that is used as a proof of tax being paid.

Where to file?Payment and Lodgement of tax must be submitted to:1. Places to pay

a. Place of tax payment and remittance is Post Office and Banks appointed by the Directorate General of Finance.

b. Directorate General of Taxation is not permitted to receive tax payments from the taxpayer.

c. For fiscal payment abroad payment can be done in payment counters that have been provided in the port of departure.

2. Places to filea. SPT delivered to the Tax Office

where the taxpayer is registered.b. Submission of tax return can

be directly or through the PostOffice with the Post noted.

c. Receipt from the post office is considered as proof and date of receiptof SPT, SPT has a complete round.

d. Submission of tax return other than through the Post Office can be donethrough the courier service companyor courier service designated bythe Director General of Taxes.

e. Courier service company or courier service must be qualified as follows:

i. The company must have a legal entity.ii. Having a permit on courier

and expedition services.iii. Willing to sign an agreement with the

Directorate General of Taxation.

Type of tax

Corporate Income Tax

Other Withholding Taxes

VAT and Luxury Goods Sales Tax (LGST)

Employee Withholding Tax

Tax payment deadline

The 15th of the following month

The 10th of the following month

Prior to the tax return filing deadline

The 10th of the following month

Filing deadline

The 20th of the following month

The end of the following month

Type of tax

Corporate Income Tax

Land and Building Tax (PBB)

Individual Income Tax

Tax payment deadline

Before filing the tax return

Six month after the receipt of a Tax Due Notification Letter (SPPT) from the Tax Authority

Before filing the tax return

Filing deadline

The end of the fourth month after the book year end (Usually meaning April)

The end of the third month after the year end (Usually meaning March)

1. ManualManual method is tax filing usinghardcopy SPT that is acquired directlyfrom the DGT or Downloaded and canbe copied as needed by the company.

2. E-filingE-filing is a method of tax filing using ane-SPT software that have been providedby the DGT and so the tax filing can bedone directly to the DGT official website.

How to file?There are 2 methods to file tax in Indonesia, manual filing and electronic filing:

Tax Compliance1. Monthly tax obligationsHere are the monthly tax obligations deadlines that you need to adhere to:

It is good to remember that any underpayment of monthly tax payments must be settled before submission of the annual tax return.

2. Annual tax obligationsTaxable business profits are calculated on the basis of universal accounting principles. In general, deductions are allowed for all expenditures incurred. Annual tax reporting needs to be done within these deadlines:

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2014 California labour law updates

Each year, the California legislature passes new employment laws, or updates existing laws, that directly impact the way employers do business in the state. 2014 was no exception.

SB 288, SB 400 and AB 11 relate to permissible time-off of work under specific circumstances.

SB 228 allows employees to appear in court proceedings for specific crimes, such as solicitation for murder and vehicular manslaughter while intoxicated. Violations of the law will be enforced by the Labor Commissioner and employees must comply with requirements for requesting the leave.

SB 400 expands existing protections for victims of domestic violence, sexual assault and victims of stalking. These protections include taking time off to appear at legal proceedings and to seek medical/psychological treatment including safety planning (only for employers with 25 or more employees). SB 400 also adds a new reasonable accommodation under this statute that may include implementation of safety measures for these types of victims.

AB 11 requires an employer with 50 or more employees to provide a temporary leave of absence of up to 14 days per year for reserve peace officers and emergency rescue personnel to receive training. The current law allows training leave of absences for volunteer firefighters only.

Immigrant Protections

AB 263 – Retaliation and Unfair Immigration PracticesThis law prohibits an employer from engaging in “unfair immigration-related practices” when an employee declares their protected rights. Specifically, an employer may not threaten to contact, or contact, immigration authorities because an employee complained that he or she was paid less than the minimum wage.

SB 666 – License Revocation for Threatening to Report Immigration Status; andAB 524 – Criminal Extortion for Threatening to Report Immigration StatusThese laws prohibit employer s from reporting, or threatening to report, an employee’s immigration status to the immigration authorities.

AB 524 sets the standard that if a person threatens to report the immigration status or suspected immigration status of an individual, his or her relative or a member of his or her family then that person may be guilty of criminal extortion.

AB 666 allows the state to suspend or revoke an employer’s business license if the employer reports, or threatens to report, the immigration status of a current or former employee, or an employee’s family member, because that employee makes a complaint about employment issues.

Employers are not subject to the suspension or revocation of a business license for requiring a worker to verify eligibility for employment under Form I-9.

AB 60 – Driver’s License for Undocumented ImmigrantsAB 60 requires the California Department of Motor Vehicles (DMV) to issue a driver’s license to an undocumented person who can prove identity, California residency and who can meet all other licensing requirements, such as the written and behind-the-wheel exams.

This card will not be acceptable for federal purposes and will be noted on the driver’s license. This may not be used to verify eligibility for employment or be an acceptable I-9 Form. This will not take effect until January 1st, 2015 or as soon as the Department of Motor Vehicle’s director executes a specific declaration, which can be before the estimated date.

Leaves and Benefits

Dozens of new 2014 California labor laws are effective on January 1, with others going into effect later in the year.

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AB 556 – Protection for Military and Veterans“Military and Veteran Status” is now added to the list of categories protected from employment discrimination under the Fair Employment and Housing Act.

SB 292 – Sexual Harassment Definition ClarifiedThis law clarifies further that sexual harassment does not need to be provoked by sexual desire. Hostile treatment can result in unlawful sexual harassment whether the behavior was motivated by sexual desire or not.

AB 263 – Protections for Exercising Rights Under Labour CodeAB 263 protects employees who assert their rights from being retaliated against by the employer. Currently this law only prohibits discharge and discrimination.

AB 263 also adds a procedure to specifically include a written or oral complaint by an employee that he or she is owed unpaid wages. If an employer fails to abide by this law, civil penalties of up to $10,000 per employee per violation may apply.

AB 263 expanded further in Immigrant Protections section below.

Immigrant Protections

AB 263 – Retaliation and Unfair Immigration PracticesThis law prohibits an employer from engaging in “unfair immigration-related practices” when an employee declares their protected rights. Specifically, an employer may not threaten to contact, or contact, immigration authorities because an employee complained that he or she was paid less than the minimum wage.

SB 666 – License Revocation for Threatening to Report Immigration Status; and AB 524 – Criminal Extortion for Threatening to Report Immigration StatusThese laws prohibit employer s from reporting, or threatening to report, an employee’s immigration status to the immigration authorities.

AB 524 sets the standard that if a person threatens to report the immigration status or suspected immigration status of an individual, his or her relative or a member of his or her family then that person may be guilty of criminal extortion.

AB 666 allows the state to suspend or revoke an employer’s business license if the employer reports, or threatens to report,

the immigration status of a current or former employee, or an employee’s family member, because that employee makes a complaint about employment issues.

Employers are not subject to the suspension or revocation of a business license for requiring a worker to verify eligibility for employment under Form I-9.

AB 60 – Driver’s License for Undocumented ImmigrantsAB 60 requires the California Department of Motor Vehicles (DMV) to issue a driver’s license to an undocumented person who can prove identity, California residency and who can meet all other licensing requirements, such as the written and behind-the-wheel exams.

This card will not be acceptable for federal purposes and will be noted on the driver’s license. This may not be used to verify eligibility for employment or be an acceptable I-9 Form. This will not take effect until January 1st, 2015 or as soon as the Department of Motor Vehicle’s director executes a specific declaration, which can be before the estimated date.

Discrimination and Retaliation ProtectionsTAX UPDATES FOR 2014FEDERALFICA (Social Security)Maximum Taxable Earnings $117,000Employer/Employee 2014 Withholding Percent 6.2%Employer/Employee 2014 Maximum Withholding $7,254.00

(up $204.60 from 2013 for ER and EE)

FICA (Medicare)Maximum Taxable Earnings No LimitEmployer/Employee 2014 Withholding Percentage 1.45%Employer/Employee 2014 Maximum Withholding No Limit, no change from 2013Additional Medicare Tax for Wages in Excess of $200,000

Rate 0.9% (No limit, no change from 2013)

SUPPLEMENTAL WAGESRate (flat rate withholding method) 25%Over $1 million 35% (No change from 2013)

WITHHOLDINGThe 2014 withholding tables have not been finalized, as Congress has not yet finalized their decision on whether to adjust the tax rates. Any changes in the withholding tables will be communicated once they have been announced.

401K PLAN LIMITS:Elective Deferrals $17,500 (No change from 2013)401K Catch Up Contribution Deferrals $5,500 (No change from 2013)Maximum 401K contribution (employer and employee) $52,000 (up from $51,000 in 2013)Maximum employee compensation towards contributions

$260,000 (up from $255,000 in 2013)

HSA PLAN DEFERRAL LIMITATIONSIndividual Maximum Contribution (Includes Employer Contribution) $3,300 (up $50 from 2013)Family Maximum Contribution (Includes Employer contribution) $6,550 (up $100 from 2013)Catch-up Contributions (55+ years old) $1,000 (No change in 2013)

CALIFORNIA ONLY:SUPPLEMENTAL WAGE WITHOLDINGSBonuses & Earnings from Stock Options 10.23% (No change from 2013)Other Supplemental Earnings 6.60% (No change from 2013)

DISABILITY INSURANCE (Employee Paid)Maximum 2014 Wages Subject to Withholding $101,636

(up $756 from 2013)Employee 2014 Withholding Percentage 1.0%

(No change from 2013)Employee 2014 Maximum Deduction $1016.36

(up $7.56 from 2013)

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Tax Authorities

Who Is Liable?

In general, China adopts an individual income tax (IIT) withholding system. Employers are required to deduct relevant tax payment from the

employees’ monthly salary and pay it to the local tax bureaus on behalf of their employees. However, there are several factors influencing IIT liability in China, including whether the employee is a resident or non-resident, the type of legal entity the employee is working for and the position the employee holds, amongst others.

The regulation of tax in China is upheld by the ‘Law of the PRC’ and in the ‘Detailed Regulations for the Implementation of the Individual Income Tax Law of the PRC’. Tax legislations and policies are developed jointly by the State Administration of Taxation (SAT) and the Ministry of Finance, with the SAT and its provincial and municipal offices administering the tax policies. In each China locality, it has a state tax bureau under the SAT and a local tax bureau under both the SAT and the local government. The responsibility of SAT and state tax bureaus are mainly collecting and administrating of the taxes.

Generally, China residents are subject to tax since Individual Income Tax (IIT) is a residence-based tax. Individuals who domiciled in China are subject to IIT on their China-source and non-China-source income whereas non-residents are subject to tax on their China-source income only.

Foreigners who live in China, not more than 90 days (or 183 days if tax treaty exists) only need to pay IIT on their income derived during their actual working period in China. However, if the income is paid by an overseas employer and is not borne by any of its establishment in China, the income will be exempted from the IIT. There is an exception for a chief representative or registered foreign representative of a Chinese representative office, as well as a foreign senior manager of a Chinese enterprise.

Expatriates who have resided in China for more than 90 days (or 183 days if tax treaty exists) but less than one year, are subject to pay IIT on the income derived from sources in China, regardless of who made the income payment. However, there is currently no inheritance or wealth tax imposed. The following categories of individual income are regarded as being derived from sources in China:

Tax Filing In China

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By Neo Wei Jek

Acrede

Page 27: Accolade February 2014

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Tax Rates

Tax Table

Tax Registration for Foreigners

1) wages and salaries received duringactual working period within China;

2) income derived from the assignmentof properties in China;

3) income derived from performingservices as an independent contractor;

4) income derived from propertyleasing within China;

5) income derived from interest ordividends paid by enterprisesor individuals within China;

6) income derived from grantinglicensing rights for use within China.

Expatriates who have lived in China for more than one year but less than five years are subject to pay IIT on their worldwide income. However, foreign sourced income is only taxable if it is paid by enterprises or individuals in China.

Expatriates who have lived in China continuously for more than five years are treated as residents and are subject to IIT on their worldwide income derived from sources within and outside China after the fifth year.

Income from wages and salaries is taxed according to progressive rates from 3 percent to 45 percent of monthly taxable income.

Monthly taxable income is calculated after a standard monthly exemption of RMB 3,500 for local employees and RMB 4,800 for foreign individuals working in China. Contributions to Chinese social insurance and housing fund can also be deducted from pretax.

Monthly Taxable Income = Monthly Income – Standard Monthly Exemption – Deductibles (SIHF)

Tax Payable = Taxable Income x Applicable Tax Rate – Quick Calculation Deduction

Foreign individuals who are liable to IIT may be required to register with the local tax authorities, subjective accordance to the practice of the local tax bureaus in the region. Individuals should register with the local tax bureau in the location where the individual usually works.

Registration usually takes place upon arrival in China for employees of foreign investment enterprises and for resident representatives of representative offices of foreign companies. Other individuals should also register at such time as they become liable to tax (i.e. an employee of a foreign employer on work-related assignments in China for more than 90 days or 183 days) with his/her income not being borne by any local enterprise.

Fines of up to RMB 2,000 may be imposed on individuals who fail to perform the tax registration. Further fines may also be imposed if the taxpayer fails to register within prescribed time limits.

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Tax Rate (%)

Quick Deduction

(RMB)

Monthly Taxable Income (RMB)

0 - 1,500.00

1,500.01 - 4,500.00

4,500.01 - 9,000.00

9,000.01 - 35,000.00

35,000.01 - 55,000.00

55,000.01 - 80,000.00

80,000.01 and above

3

10

20

25

30

35

45

0

105

555

1,005

2,755

5,505

13,505

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Tax Filing and Payment Procedures

The PRC tax year runs from 1st January to 31st December. The tax filing is administered on a monthly basis and filing within 15 days of the following month. At the end of the year, an annual IIT declaration, if required, should be submitted to tax authorities within three months of the end of the previous calendar year. Commonly in every part of the world, there will be a late filing penalty imposed for Annual IIT Declaration which can be as much as five times of the amount that was due.

In China, spouses are taxed separately, not jointly, on all types of income. As mentioned earlier, foreigners must register with the local tax bureau or, if individuals are engaged in offshore oil and gas exploration activities, with the local offshore oil tax bureau. Foreigners subject to China IIT may need to complete a tax registration form and provide an employer’s certification stating the amount of their compensation, along with copies of relevant passport pages to verify their date of arrival.

Monthly Income Tax Returns

Although an individual is responsible for payment of income tax, tax is generally collected through a withholding system whereby the payer is the withholding agent. The withholding agent must notify its supervising tax authorities of the basic personal details regarding all individuals to whom it has paid taxable income. Required personal details for payees include name, personal identification number, position, residential address, telephone number and correspondence address.

Additional information will be required if the income recipients are not 1) employees of the withholding agent, 2) investors, 3) equity owners, or 4) non-residents ofChina. However, payers of interest and dividends are only required to file a set of simplified information of the recipients. Withholding agent must submit the above information in the month following the month of payment of taxable income to an individual, regardless of the availability of deductions or concessions that may be offset against the income. In addition, the withholding agent must also notify the tax authorities of any subsequent changes.

In the event whereby the withholding agent fails to withhold the tax and file the monthly tax returns with its governing local tax bureau for its employees and income recipients, the tax authorities may impose a penalty from 50% to 300% of the tax due on the withholding agent.

All taxpayers, including those earning China-source income but not covered by the withholding system, and employees who are paid outside China, must file monthly income tax returns and pay the relevant tax to the local tax bureau. The returns must be filed within 15 days after month-end.

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Where to file?

Annual Tax Returns

1. Taxpayers employed by a businesswithin Chinese territory should filereturns where the business is located.

2. Taxpayers employed at two or morebusinesses within Chinese territorymay choose to file at the locationof any one of the businesses, butshould stick to that choice.

3. Taxpayers who are not employeesat any business within Chineseterritory, but who have income fromIICHs or from operating businessesby contract or lease (income fromproduction and trade), should fileat one of the locations where thebusinesses are carried out.

4. Taxpayer who is not an employee atany business within Chinese territoryand who does not receive any incomefrom production or trade may fileat the location where his residenceis permanently registered. If thatlocation differs from the location ofthe taxpayer’s habitual residence, hemay choose among the two locationsbut must stick to that choice. If thetaxpayer does not have a permanentlyregistered residence, he should filewherever he habitually resides.

Chinese residents with foreign-source income must file annual reconciliation tax returns and pay tax due within 30 days after the end of the calendar year. If the foreign tax year is different from the China tax year and if it is difficult to file income tax returns within 30 days after the end of the calendar year, it is possible to file the reconciliation returns within 30 days after the foreign taxes have been paid. Foreign taxes paid on this income are allowed as a tax credit, up to the amount of China IIT levied on the same income. Individuals who are taxpayers are now required to register and file annually with a tax bureau in charge if any of the following circumstances apply:

• The individual’s annual incomeexceeds RMB 120,000.

• The individual receives wages or salariesfrom two or more sources in China.

• The individual receives incomefrom outside China.

• The individual receives taxable income,but he or she has no withholding agent.

• Other circumstances specifiedby the State Council exist.

China resident individuals earning more than RMB 120,000 a year must undertake the annual filing within three months after the end of the tax year. Foreigners departing from China must pay all taxes before departure and may need to complete the relevant “deregistration” formality with the local tax authorities. Late payment of tax is subject to a daily interest charge of 0.05%. Penalty of up to five times the amount of unpaid tax may be levied for tax evasion or refusal to pay tax.

Tax Filing Methods Annual Tax Returns (IIT Declaration Forms)

There are three methods of filings in China:

1) Paper Form – Manual formsubmitted to the Tax Bureau

2) Soft disk – Softcopy formstored in a storage devicesubmitted to the Tax Bureau

3) Online – Online form throughsoftware and the internet

Withholding tax agents are required to submit the monthly tax returns to their registered Local Tax Bureau manually or through e-tax, e-filling system software used to submit tax returns. Tax Bureau in different locality set up their local separate e-tax filing system; hence the processes and the filing forms of these systems may differ and will change with respect to the upgrading of these systems from time to time. Moreover, the soft disk declaration and paper work declaration in different areas may also differ.

Similarly, individuals, if required, could do their filings through 1) paper declaration, 2) soft disk declaration and 3) onlinedeclaration. In addition, forms may vary in different localities of China.

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They mainly rely on agriculture, industry, and commerce on their fast growth rate. They are also one of the largest producers of Oil in South

East Asia in 2011. With the continuous growth since the late nineties, Vietnam is considered to have employment growth for the next coming years and as a vital role to that growth, Payroll is considered to be one of the key processes that need to be handled accurately. Vietnam Payroll is quite straightforward when compared to the other Payroll Processes in South East Asia, except for the filing of their Mandatory Insurances.

Vietnam is reliant on the manual filing of Taxes and Statutory as well as using their local language in the forms used for the filing.For Vietnam, we have a Withholding Tax called PIT and additional Insurances which are the Mandatory Statutory for their Payroll.

Vietnam has been one of the world’s fastest growing economies since the late nineties.

Payroll: Socialist Republic of Vietnam

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By Angelo Salumbides

Acrede

Page 31: Accolade February 2014

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Personal Income Tax or “PIT”

The headline foreign exchange (FX) rate is important because it is the key component of the currency exchange. However, it fails to take account of the additional transactional charges and the timeliness and accuracy of payments; the latter two can add significant costs that can dwarf a 0.2 per cent difference in rates.

This is a withholding tax amount that is deducted from the employees’ wages on a monthly basis. There are two categories for the PIT deduction which are the Non-Resident and the Resident Tax deduction.An Employee is considered as a non-resident employee if the person has been in Vietnam within 90 to 183 days. If they exceed the stay for more than 183 days, they can already be considered as a Resident and the tax calculation would be dependent on the tax table rates.

A Non-resident employee is taxed at a rate of 20% of his/her wages as compared to a Resident Employee who can be taxed at a lower rate depending on the wage bracket of the employee in the Tax Table.

The Tax table for the calculation of the PIT for Resident individuals is as follows:

Personal Income Tax Rates.Residents - employment income

Tax Deductions and Reductions:

Tax deductions are tax exemptions that can be deducted from the employees Gross Wages with regards to the calculation of PIT.

Tax deductions include:

1. Contributions to mandatorysocial, health and unemploymentinsurance schemes;

2. Contributions to certainapproved charities;

3. Tax deduction: (Effective 1 July 2013)

Personal allowance: VND 108 million/year or VND 9 million/month

Dependant deduction: VND 3.6 million/month. The dependant allowance is not automatically granted, and the taxpayer needs to register qualifying dependants and provide supporting documents to the tax authority

There is also an additional Tax Reduction where a Resident or a Non Resident is working in a certain economic zone, which entitles them a 50% tax reduction.

Insurances:

Vietnam has three types of Insurances which are mandatory for all residents of Vietnam and only one of them is mandatory for non-resident employees.

The Three types of Insurances are Social, Unemployment, and Health Insurances from which the Health Insurance is the only mandatory for non-resident employees.

All three Insurances have the same regulatory with regards to how much is the maximum amount that can be calculated from the employees’ wages.

The Maximum capping amount that can be calculated for the insurance statutory is 20 times the minimum wage salary or VND 1,050,000 per month.

The method of calculation for each of the Statutory Insurances is considered in the Table below:

With the continuous growth since the late nineties, Vietnam is considered to have employment growth for the next coming years and as a vital role to that growth

Employee Employer

SI

UI

HI

7%

1% 1%

1.5%

17%

3%

Monthly Taxable Income

(Million VND)

Tax Rate%

Annual Taxable Income

0 - 60

120 - 216

384 - 624

624 +

60 - 120

216 - 384

624 - 960

0 - 5

10 -18

32 - 52

80 +

15

25

35

5 - 10

18 - 32

52 - 80

5

10

20

30

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A lot has been written about the current and proposed changes to superannuation in the last twelve months. Following the Super

System Review that was completed mid 2010, a number of recommendations have now been legislated and have become an accepted part of the superannuation landscape in Australia, including;

• The establishment of MySuper, a lowcost default superannuation productto be provided by authorised fundswill replace existing default products.

• The implementation of SuperStream,the standardisation of data formats,greater reporting requirements, anddata sharing between employers,

• Self Managed Super Funds, to bemore closely regulated and audited.

• Super Guarantee Rate increases.

• Removal of the upper agelimit on SG contributions.

With the Federal election held in September 2013 and the subsequent change of

government, a review of the proposed outstanding changes to super was undertaken with some adjustments made around the edges. Self Managed Super Funds (SMSF’s) are destined for greater scrutiny with these changes funded in part with increases to the ATO Supervisory Levy imposed on each SMSF annually. Although recent announcements by the Treasury suggest the fee increase won’t be as severe as first announced.

The proposed suspension of increases to the Superannuation Guarantee charge appears to be going ahead with the planned increases being put on hold until 1 July 2016, when the next increase to 9.5% will take place. 1 July 2017 will see the next increase to 10% and then half of one percent will be applied to the SGC each year until 12% is reached. Watch this space though; we may yet see the original increase schedule re-instated.

A noteworthy point to include while discussing some specific values, though not related to the above review, is the Concessional Contribution cap thresholds. The previous indexed $25k cap frozen in 12/13 and 13/14 should, if going to plan, have moved to $30k. Instead we now have in place a concessional cap for those aged 59 years or older on June 30 2013 of $35k (unindexed), with the age

The Latest Wrap

By Nigel Sivyer

Acrede

Page 33: Accolade February 2014

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threshold reducing to 49 years on June 30 2014, thereby enabling a broader group to take advantage of the revised amount. This supersedes the previous $50k cap that was originally scheduled for July 1 2012.

To date, the greatest impact on payroll operations, software vendors and superannuation funds has been the implementation of the SuperStream reforms which have been rolling out since mid-2012 when the legislation was passed in Federal Parliament. One of the first initiatives from the review to be rolled out was the change required to employee payslips, requiring the ‘expected payment date’ of super contributions, as well as the contribution value for the pay period covered by that payslip. This was to be in addition to the previous requirements of stating the name and contact number of the fund the monies were being sent to. The second phase of this reform from 1 July 2013, was the inclusion of actual contributions paid rather than just accrued contribution values, as well to be included were the fund and contact particulars.

So now we look at what’s still to come from the review that will impact employers and payroll operations. Estimates put the value of superannuation payments in Australia at approximately $3.5 billion, which equates to about 100 million transactions annually. These have previously been processed with, no common data formats, transmission requirements and poor quality data that included missing or duplicate entries resulting in erroneous enrolments. Added to this, many employers used manual payment methods and paper based advice to funds, which then had to be input into systems via readers or worse, manually keyed. To their credit (and benefit) most of the larger funds were affiliated with, or established their own, clearing house facilities that saw to some degree organisation wide common practice. However, whilst the results were comparatively better they (the funds) could, at times, still be plagued by the same issues born out of outdated administrative and compliance requirements.

The SuperStream initiatives have addressed the need for greater secure exchange of information in standardised forms, with common data standards using the Standard Business Reporting (SBR) framework and the use of eXtensible Business Reporting Language (XBRL). With the SBR framework as a platform and XBRL providing for the safe exchange of information, in conjunction with the accepted recommendation of using the standards of the Australian Payments Clearing Association (APCA) and the international financial messaging standards prescribed by the International Organisation for Standardisation (ISO20022), a solution was found.

On July 1 of this year we see the requirement as stipulated, for all large to medium (20+ employees) employers, to utilise e-commerce with the new data standards when interacting and exchanging information with superannuation funds, while using the Tax File Number as a key identifier (previous to the review and subsequent legislation this was disallowed). All APRA (Australian Prudential Regulatory Authority) regulated superannuation funds (and SMSF’s) have been required to adhere to these new standards since July 1 2013, so should be well placed to assist employers with the readiness and transition of their clients. It’s important to remember that the July 1 date is the compliance date stipulated, however employers can commence this new process as soon as practicable to avoid the rollout coinciding with year-end processes and reporting.

Superannuation in Australia refers to the retirement savings contributions which people accumulate in Australia to fund their retirement. Superannuation in Australia is government legislated and minimum percentage contributions are compulsory for employers, while additional employee contributions are encouraged.

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SINGAPORE

Tel: +65 3158 4673 // eMail: [email protected] //Web: www.acrede.net //

United kingdom

Tel: +44 (0)845 5577 970 // eMail: [email protected] //Web: www.acrede.net //

JERSEY

Tel: +44 (0)845 2873 401 // eMail: [email protected] //Web: www.acrede.net //

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