Gross Wage Matters
The staff member receives net pay, but the business cost starts with gross wage and includes super and other obligations.
Labour cost is more than the amount paid into a staff member's bank account. Real employment cost includes gross wages, PAYG, super, training, productivity and management time.
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The staff member receives net pay, but the business cost starts with gross wage and includes super and other obligations.
PAYG withheld belongs to the ATO and should be protected until paid.
Superannuation is part of employment cost and belongs to the employee's super fund.
Two staff members on the same wage can have very different output. Labour cost must be reviewed against production, sales and customer experience.
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