Institute of Certified Bookkeepers
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Pay Dates

  • Member in Practice
  • Practice Certificate
  • 4 posts
  • # 117132

Hi all, I have a client in the medical industry whose staff are on a fortnightly payment schedule - how many days after the pay period do the wages have to be i their bank accounts - nothing on fair work or in the award?

  • Fellow in Practice
  • Practice Certificate
  • 266 posts
  • # 117133

HI

 

The business should have nominated a pay day for the period eg every Thursday and the expectation is that the pay would be processed that day to be in the bank by the the next business day.

 

Many awards stipulate what day a pay day is so you should also check that.

https://www.fairwork.gov.au/pay/paying-wages

  • Member in Practice
  • Practice Certificate
  • 4 posts
  • # 117134

Smile Thank you

  • 34 posts
  • # 117135

Hi Steph,

We see business pay anywhere from 1 to usually no more than 10 days in arrears.

However, I wouldn’t necessarily be working to a delayed deadline, instead I would suggest working out how long you need to process payroll and allowing enough time.

I would also allow for the growth of the business, eg if they have 5 staff, the next day might be enough, but what if they have 50 staff, a few days might be required to collaborate all the data required.

We recently wrote an article about the best day to process payroll.

We researched many different industries including the medical industry, typically 3 days after the end of the pay period is common practice and easily enough time to allow for unexpected delays like public holidays.

This is assuming you’re using modern solution like cloud timesheet and payroll software.

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