Tasmania. Employer Information. Tasmania.

Transcription

1 Employer Information Tasmania Employer Information Tasmania

2 Table of Contents Redundancy Scheme Employer Information The Trust 3 Getting Set Up with Incolink 4 Invoice Periods 5 Ongoing Contributions 6 Payment Due Date 8 Late Payments 8 Alterations to Details 8 Worker Accounts 9 Claims 10 Severance/Redundancy Accounts 10 Genuine Redundancy Accounts 12 Apprentice Claims 13 Helpful Information 14 Incolink Building and Construction Tasmania Benefits 16 Tasmania Leisure Time Accident Benefits Program 18 Tasmania Illness Benefits and Workplace Trauma Program 20 Employer Checklist 23 Employer Information This Booklet is designed to provide answers to the most common questions but is not a substitute for the Trust Deeds which governs the Funds. The information contained herein is correct as of August

3 Redundancy Scheme Employer Information The Trust Incolink is the trading name of the Redundancy Payment Central Fund Ltd. The Company acts as the Trustee of the Trust which governs the Redundancy Payment Approved Worker Entitlement Fund No. 2 applicable to employers and their employees within the commercial, Building Construction and Services Sector in Tasmania. Workers are entitled to redundancy payments in accordance with: The terms of their Enterprise Bargaining Agreement (EBA) The contract of employment. A copy of the full Trust document is available on request. 3 Redundancy Scheme Employer Information

4 Getting Set Up with Incolink Agreement to join and contribute to the Fund Employers agree to join and contribute to Incolink in accordance with the Building Industry Redundancy Pay Scheme by completing the following form: Application for Membership and Deed of Adherence. Contact Incolink for further information or download the abovementioned form from Information to Accompany the Agreement Form Along with the Application for Membership and Deed of Adherence: Employers are required to provide a list of eligible workers details to Incolink including the following details: Full Name, Address, Date of birth, Start Date, and Incolink Member Number (if your worker is already an Incolink member). If a worker is not already an Incolink member, upon receiving your list of names we will then register the worker. We will issue them an Incolink Member Number, and post their Member Card to their home address. If available we also request that you provide us with the worker s contact details such as: Mobile or home telephone number, address Industrial Instrument If you are currently working under an Industrial Instrument or Enterprise Bargaining Agreement (EBA) you will need to provide us with a copy of this agreement. Who is an Eligible Worker? Eligible workers are those who are currently working in the Commercial Building, Construction and Services Sector in Tasmania, where an Enterprise Bargaining Agreement (EBA) applies. 4

5 Apprentices When adding new apprentices please ensure you only register an apprentice with Incolink when the apprentice works on a commercial or industrial site and also provide the date the apprentice commenced their apprenticeship. This may differ from the date they commenced employment with you if they commenced their apprenticeship with another employer. Please also include the year of indenture and their trade. You will also be required to provide on the invoice under the column Days Worked this Month the number of days the apprentice worked on a commercial or industrial site (Monday to Friday only), this includes days on leave, days on worker s compensation, days spent attending school, rostered days off and public holidays. If an apprentice has completed their apprenticeship please provide the completion date to Incolink, in writing on the invoice or on company letterhead. Processing your Application Subject to all application being completed correctly and all relevant documentation being supplied, it takes approximately two working days for Incolink to approve and process an application for membership. Employers will receive a confirmation of approval and their Incolink Member Number once the registration process is complete. 5 Redundancy Scheme Employer Information Call (03)

6 Invoice Periods In accordance with the Trust Deed governing the funds, Incolink invoice periods are either 4 or 5 weeks dependent upon the number of weeks (Monday to Friday) that fall in the invoice period. Returns will not be able to be processed if they are not calculated according to Incolink invoice periods. Incolink will send you an invoice at the end of each month for the contribution allocated to each of your employees. You make any alterations necessary to the amounts allocated. Please be assured that Incolink makes every effort to ensure that you receive your invoice promptly. You can normally expect to receive the invoice within 2 to 3 working days of the 25 th of the month. Payment is due by the 14 th of the following month. Any payments received after the 30 th of that month will incur a late payment fee. We will send you a tax invoice receipt once your payments have been received and the invoice processed. Ongoing Contributions Payment Methods Incolink accepts a number of payment methods for employers making their monthly payments, including; BPay (preferred) Cheque Employers are required to pay Incolink in accordance with the invoice periods as defined in the Trust Deeds and other agreements governing the funds. Online Processing EmployerLink EmployerLink is an online processing system to conveniently and easily update and pay employer contribution payments to Incolink. The system also allows for processing of income protection and trauma insurance (IPT) contributions, portable sick leave (PSL) contributions, (if required). To start managing worker contributions online you will need your employer Member Number and access to the internet. EmployerLink is accessible 24 hours a day, seven days a week. Contact us for further information or register online visit 6

7 Manual Processing When using Incolink s invoice, we request employers return the amended invoice to Incolink (keeping a duplicate for your own records), along with the payment for the adjusted monthly contribution. Employers may provide the details to Incolink using a spreadsheet, as long as the spreadsheet mirrors the layout of the Incolink invoice. Annual CPI Increase You will need to refer to the amount stipulated in your current Enterprise Bargaining Agreement (EBA) and provide Incolink a copy of your EBA to determine the rate you are required to pay. The amount the employer is required to contribute for redundancy to their workers is set on 1 st October each year in line with the annual increase in CPI. This includes the annual increase in the Apprentice Levy in line with the CPI increase. Authorised Officers The following people are authorised to sign documents related to claims or advise us of company changes, on behalf of the employer: A current director of the company A partner in the business An authorised contact for the company as previously advised in writing to Incolink 7 Redundancy Scheme Employer Information

8 Payment Due Date Incolink Employer Contributions are due on the last day of the month to which it relates however payments will be accepted until the 14 th of the following month. Employers are then able to amend the invoice to reflect changes in the workforce. Please remove or adjust for workers who did not work on a commercial or industrial site the entire month. When adding new workers please ensure you provide their full name, address, date of birth, start date and their trade. If a worker has left your employment please provide the termination date. Late Payments Payments received after the last day of the month following the month in which they were due will be subject to a 10% Late Payment Fee as prescribed in the Trust Deeds and any subsequent amendments to the Deed. For an Example: The August invoice is due for payment by 30 th August, however, because we collect payments in arrears we allow you until 14 th September to make payment before taking action. Payments received after 30 th September will incur the late fee. Alterations to Details Please assist us in keeping our records up-to-date by notifying Incolink in writing of any change of address or change of directors for your company. Tax Invoices Please note that GST if applicable is payable on invoices. You will now receive a provisional invoice where you will be able make the necessary amendments and return to Incolink with your payment. A Tax Invoice receipt will be issued to you once the provisional invoice and payment have been processed. 8

9 Worker Accounts Workers are now able to select how their redundancy funds are treated, the account options are: An Incolink Severance/Redundancy Account (the default account), which provides access to funds for workers if their employment is terminated for any reason. However, payments are taxed in accordance with ATO requirements subject to eligible concessions. An Incolink Genuine Redundancy Account, which provides access to funds for worker if they are made genuinely redundant (i.e. the job is no longer required by the company).workers will be eligible to claim part or all of their balance at nil or reduced tax, on being made genuinely redundant. PLEASE NOTE: workers should seek independent advice before selecting a Genuine Redundancy Account. To select a Genuine Redundancy Account, workers will need to complete the Incolink Redundancy Account Application Form. To obtain a copy of this form please contact Incolink or download it from: There will be nil cost for workers to select and transfer their redundancy account balance into an Incolink Genuine Redundancy Account. Further, Incolink does not charge any fees to workers to claim their funds. For more information on the above account types please contact Incolink (03) or visit 9 Redundancy Scheme Employer Information

10 Claims Severance/Redundancy Account On termination of employment a worker holding an Incolink Severance/Redundancy Account shall be entitled to a make an initial redundancy claim; called the Initial Benefit, which will be paid by Incolink. The Initial Benefit will be processed into the account of the worker upon the date of termination; the amount will not exceed the maximum Initial Benefit amount as adjusted on 1 st October each year (less tax at the rate determined by the Australian Taxation Office). Claiming Initial Benefit On termination of employment a worker has options when claiming their Initial Benefit entitlement: A worker can ask their employer to assist by providing the Initial Benefit Claim Form, and sending the completed claim form to Incolink on behalf of the worker. For Incolink to accept and process the claim the claim form must bear a company stamp or seal and must be signed by an authorised officer. Or If you do not have a company stamp or seal, the claim form must be accompanied by a letter of termination on company letterhead signed by an authorised officer, confirming the workers date of termination. Incolink will also accept a Separation Certificate signed by an authorised officer and bearing the company stamp or seal. To enable the worker to make a claim they will need to provide a copy of a Separation Certificate, bearing the company stamp and signed by an authorised officer of the company. If they are unable to provide this, the employer will need to provide a letter of termination on company letterhead signed by an authorised officer confirming the date of termination. This letter can be faxed/ ed to Incolink. 10

11 Claiming the Balance of Funds Redundancy Benefit Eligible workers holding an Incolink Severance/ Redundancy Account, can withdraw the balance of funds remaining in their account after the Initial Benefit has been paid provided the worker: Has been unemployed for four weeks and registered with: o Incolink s Training Employment and Careers o Centrelink o PLEASE NOTE: If registered with Centrelink, proof of registration in the form of an official document from Centrelink is required. If the worker is not registered with either organisation, the statutory declaration must be competed and executed. Have not worked in the industry for 39 weeks; the statutory declaration must be competed and executed. Is retiring from active employment and is over 55 years of age; the statutory declaration must be competed and executed. Is unemployed and leaving Australia for more than two years (a certified copy of a current passport and airline ticket must be provided as proof); the statutory declaration must be competed and executed. To make a claim on the remaining balance of funds workers need to submit the Redundancy Benefits Claim Form. If the statutory declaration is completed, this claim form cannot be faxed/ ed and the original document must be posted or brought into the Incolink office. Contact Incolink for further information about redundancy claims or download forms from 11 Redundancy Scheme Employer Information Call (03)

12 Genuine Redundancy Claims With an Incolink Genuine Redundancy Account, workers will be able to claim a genuine redundancy payment if their employment is terminated because their position is no longer needed. Other situations where payments from an Incolink Genuine Redundancy Account may be claimed include: Termination of Employment due to Permanent Disability, Termination of Employment due to Death, or Retirement Termination for any reason, on or after 65 years of age. (Taxed at the concessional rate plus Medicare Levy). Reaching age 66. (Taxed at the top marginal tax rate plus the Medicare Levy). A workers balance will be paid when a genuine redundancy claim is made: Upon employment termination, workers will need their employer to confirm their redundancy is a genuine redundancy. Employers may also be required to confirm workers years of employment. Tax free amounts will be calculated on the worker s completed years of employment using the ATO s Genuine Redundancy Tax rules. Workers must submit their Genuine Redundancy Claim to Incolink within 30 days of being made genuinely redundant. If the completed claim form is received by 10am, the claim will be processed the same day: A cheque will be posted to the worker the same day, or If we are provided with bank details, the funds will be directly transferred on the same day and the worker will have cleared funds in their account the following day. 12

13 Apprentice Claims During an apprenticeship, if an apprentice is redundant due to lack of work, they may be eligible to make a claim. Under the Incolink Trust Deeds, an apprentice can claim their apprenticeship days as redundancy in the following situations if they become unemployed: An apprentice completes their apprenticeship, and then completes 52 weeks within the commercial building industry, and their employer/s has paid 52 weeks employer contributions into Incolink during the period. An apprentice who has not yet finished their apprenticeship is laid off due to a shortage of work, and there is no arrangement with their employer to re-employ them. An apprentice completes their apprenticeship, and is then laid off due to shortage of work within the next 52 weeks, and there is no arrangement with the employer to reemploy them. Tax Rates Incolink has an Australian Taxation Office (ATO) tax ruling that allows us to provide employment termination payments to workers in the building and construction industry. All claims are processed in accordance with ATO regulations. If a worker pays more tax than required they may be eligible to claim a refund when completing their annual tax return. When processing claims, Incolink will deduct tax at the current rate determined by the ATO. It is not against the law for workers not to provide Incolink with their Tax File Number (TFN). However, workers who do not provide us with their TFN or confirmation of their exemption from this requirement, tax will be deducted at the maximum marginal rate. Please refer to our website for tax rates. 13 Redundancy Scheme Employer Information

14 Helpful Information Where employer contribution payments are required: First and Final Week of Employment If a worker commences with an employer Tuesday to Friday inclusive, they shall be entitled to a full week s contribution. If they cease employment Monday to Thursday inclusive, no contribution is payable for that week. Hence, Friday is the key day in the first and final week of employment. Normal Week A full weekly contribution shall be paid for any time a worker performs work on a commercial or industrial construction site during that week. Annual Leave Contributions are still payable while your workers are on paid Annual Leave. Sick Leave Contributions are still payable while your workers are on paid Sick Leave. Long Service Leave While your workers are on Long Service Leave, you are still required to make contributions for them even though they are being paid by the Construction Industry Long Service Leave Board. Worker s Compensation Where a worker was off work and on Workers Compensation before 30 th September 1989, contributions are payable for the first 26 th weeks (six months). Where a worker has been off work on worker s compensation from 1 st October 1989, all contributions are payable for the first 52 weeks (12 months); once the 52 weeks have passed you must continue to pay IPT (if applicable) while the worker remains in your employment. 14

15 Where employer contribution payments are not required: Unpaid Leave Where a worker is on unpaid leave or absent without pay for a full week, no contribution is payable for that week, however the IPT (if applicable) must be paid. Pay-Roll Tax on Contributions Effective 1 st July 1993, the State Revenue Office determined that contributions to Incolink no longer attracted pay-roll tax. Worker s Compensation (WorkCover) Levy on Contributions Effective 1 st July 1994, the Accident Compensation Act was amended in a similar fashion to the Pay-Roll tax Act, which means contributions to Incolink no longer attract worker s compensation levy. 15 Redundancy Scheme Employer Information Further information Should you require further information, please call Incolink on (03) or Freecall (available regional areas only, not available from metro Melbourne or mobiles) or visit our website

16 Incolink Building and Construction Industry - Tasmania Benefits Program Incolink provides building and construction workers with redundancy benefits, along with an extensive list of member services and programs. Incolink has a range of insurance covers based on employer payments. Insurance cover will only be provided where the employer continues to pay the agreed employer payments. To ensure that your workers are covered by Incolink s insurance benefits, employers are required to pay the agreed contribution payment to Incolink on time each month. Workers who receive payments to Incolink s redundancy scheme will be eligible for insurance cover under the Incolink Tasmanian Leisure Time Accident Benefits Program Workers who receive IPT contribution payments will be eligible for Incolink s Tasmania Illness Benefits and Workplace Trauma Program. As the administrator of these schemes, Incolink is continually following up overdue employer contribution payments. Where there are gaps in employer contribution payments, no cover will apply for those periods. Please contact Incolink to obtain a copy of the Building and Construction - Tasmania, Leisure Time Accident Benefits Program brochure or the Illness Benefits and Workplace Trauma Program brochure which outlines the benefits program or download it from 16

17 17 Incolink Building and Construction Industry - Tasmania Benefits Program Please note: Incolink is the administrator of the Leisure Time Accident Benefits Program. The insurance policy is arranged by Windsor Management Insurance Brokers and distributed by Incolink. Incolink does not manage or process claims. All claims are managed by Total Claims Solutions, who have been appointed as claims managers on behalf of QBE Insurance (Australia) Limited. Claim forms are available at or by contacting Total Claims Solutions P/L on (03) Incolink does not give any advice in relation the insurance policy. Conditions and exclusions apply to all the covers mentioned within this brochure. For additional information, contact Incolink for a copy of the Incolink Leisure Time Accident Benefits Program brochure.

18 Tasmania Leisure Time Accident Benefits Program Employer contribution payments made to Incolink include insurance benefits for workers and their families under the Incolink s Leisure Time Accident Benefits Program for Tasmania. Incolink offers benefits to eligible workers who have suffered an accident resulting in an injury outside working hours and preventing a worker from working. Benefits include a weekly benefit for up to two years, lump sum benefits, for example, death, paraplegia, loss of limbs and includes a broken bones benefit were the injury has resulted in a break or fracture of a bone. Important points to remember are: Employers must continue to pay employer contribution payments to Incolink while their worker is employed payment only ceases when the worker is terminated or if the worker is not working on a commercial/industrial site. Employers need to remember, it is really important employer contribution payments to Incolink are up-to-date as the worker s insurance cover ceases if there are gaps in contributions, or contributions have not been made when the accident occurs. Insurance cover ceases at age 70. Where a worker receives employer contribution payments to Incolink the worker will receive insurance cover for: Weekly Accident for Leisure Time Injury Broken Bones Capital Benefits (Accidents only) Journey Cover Weekly benefits Dental (Accidents only) Funeral Benefits Extension of Cover between Jobs Please refer to the Tasmania Leisure Time Accident Benefit Program brochure for more information. 18

19 19 Tasmania Leisure Time Accident Benefits Program Call (03)

20 Tasmania Illness Benefits and Workplace Trauma Program Incolink administers an Tasmania Illness Benefits and Workplace Trauma Program through an IPT agency agreement that Tasmanian employers can apply to become a member of when they register with Incolink. If you are required to make weekly IPT contribution payments under the terms of an Enterprise Bargaining Agreement (EBA), you will be required to pay the relevant monthly payment along with your other monthly contributions to Incolink. In addition to providing workers with redundancy benefits, Incolink provides workers with covers under the Illness Benefits and Workplace Trauma Program. To be included as member of the Incolink Tasmania IPT scheme, employers must be paying IPT contributions to Incolink, which pays the premium on the Insurance policy that provides the various IPT benefits to workers. IPT contributions to Incolink provide the following benefits: Employers pay the required contribution per week for workers to be included in Incolink s Tasmania Illness Benefits and Workplace Trauma Program. This provides the workers additional insurance covers beyond Incolink Tasmania Leisure Time Accident Benefits Insurance Program, which is included with employer contribution payments. While an employer makes IPT contribution payments to Incolink the worker will receive insurance cover for: Leisure Time Illness Workplace Death and Trauma 20

21 Important points to remember are: Employers must continue to pay IPT 100 per cent of the time their workers are employed - payment only ceases when the worker is terminated and a termination date will be required in writing. Payment must continue even if your worker is not working on industrial/commercial sites. Employers cannot pro-rata IPT contribution payments for workers. If a worker is casual, you are required to pay the IPT for any week in which the worker works and provide the week worked on your monthly return. Worker s insurance cover ceases if there are gaps in contributions. Insurance cover ceases at age 70. The employer must pay the full weekly IPT contribution even if the worker only works one day of the week. Please refer to the Tasmania Illness Benefits and Workplace Trauma Program brochure for more information. PLEASE NOTE: IPT insurance cover ceases when the worker is terminated and IPT contribution payments are no longer made to Incolink. IPT cover cannot be extended between jobs. 21 Tasmania Income Protection and Trauma (IPT) Benefits Program

22 Employer Checklist - Tasmania Please refer the current Tasmania employer check list available on our web site for the weekly contribution rates: Severance Account Claims Initial Benefit Workers can apply for an initial benefit which increase annually in line with movement in the CPI, when they become unemployed, by completing the Initial Claim Form and forwarding it to Incolink via fax, mail, or delivering it to Incolink s office. The employer must confirm the workers termination by one of the following methods; Completion of the Confirmation of Termination section of the claim form by an authorised officer of the company and bearing the company stamp/seal. Providing a Separation Certificate completed and signed by an authorised officer of the employer and bearing the company seal/stamp. Providing a letter on company letterhead, signed by an authorised officer, confirming the date of termination. The Initial Claim Form can be downloaded from our website. Genuine Redundancy Account Claims Workers holding an Incolink Genuine Redundancy Account (GRA) will be able to claim a genuine redundancy payment if their employment is terminated because their position is no longer needed. A workers balance will be paid when a genuine redundancy claim is made. The employer must confirm the workers redundancy is a genuine redundancy by completing the section of the genuine redundancy claim form. Tax free amounts will be calculated on the workers completed years of employment using the ATO s Genuine Redundancy Tax rules. The GRA Claim Form can be downloaded from our website. 22

23 Illness Benefits and Workplace Trauma Program This insurance has been established to provide benefits for those workers who have receive IPT contributions paid on their behalf. The standard IPT contribution rate is currently $11.00 per week (inc. GST). Some EBAs allow for employers to pay a higher premium and therefore provide their employees with higher benefits. The premiums are payable every week that the worker is employed by your company (ie 100% of the time). IPT contributions cannot be pro rated, although if an employee is terminated, IPT is only payable for the weeks up until the time of termination. Terms and conditions do apply. Apprentices We will send you a separate invoice listing your apprentices. On this invoice, we need you to provide the number of days worked on site during the month plus IPT payments as required. New apprentices and/or changes to details Please supply all of the details required by Incolink for other employees (see above list), as well as: Date of indenture/year of apprenticeship and trade. 23 Employer Checklist Further information Should you require further information, please call Incolinkon (03) or Freecall (available regional areas only, not available from metro Melbourne or mobiles) or visit our website Call (03)

24 Incolink. Now supporting the Tasmanian construction industry with a range of benefits and services The Redundancy Payment Central Fund Ltd A.C.N Telephone: (03) Facsimile: (03) Freecall: (Available regional areas only, not from metro Melbourne or Mobiles) Operations: redund@incolink.org.au BR2TAS 0813