Closing for Christmas? Your Shutdown Checklist for Staff, Super and Cash Flow
The break is well earned. But the bills, pay runs and deadlines don't close with your doors. Here's what to sort before you switch off.
Staff Leave Over the Shutdown
Closing over Christmas and New Year doesn't mean you can simply tell everyone to take annual leave. Whether you can direct staff to take paid leave, and how much notice you must give, depends on your award or registered agreement. Check yours early.
Then look at who doesn't have enough leave built up. Don't assume they can be sent home unpaid. Work out the plan for each person before you announce the dates.
Public Holidays Still Count
Christmas Day falls on a Friday this year and Boxing Day on a Saturday, so substitute public holidays will vary by state. Check your state's dates.
If a public holiday falls during an employee's paid annual leave, it isn't counted as annual leave. Their balance isn't reduced for that day. Your award or agreement may handle leave above the legal minimum differently, as the Fair Work Ombudsman explains on its public holidays page.
If anyone is working over the break, penalty rates and minimum engagement rules may apply. Check your award.
Super Doesn't Close With You
Under Payday Super, super must reach your employees' funds within 7 business days of payday, even while you're closed. We've covered how that plays out around Christmas pay runs in our Payday Super post.
Bonuses, Parties and Gifts
A Christmas bonus can attract PAYG withholding and super. Pay it outside your normal cycle and the super follows your next regular payday.
For parties and gifts, the fringe benefits tax rules depend on the value and the circumstances. A benefit under $300 per employee can be an exempt minor benefit. The party and the gift are looked at separately, and conditions apply, including that it isn't a reward for services. See this Christmas party and gift example.
Keep every receipt. Your registered tax agent can confirm how a specific party or gift is treated.
Cash Flow Over the Break
Income often slows while rent, loan repayments, supplier invoices and wages keep running. List everything due in December and January before you close. Chase overdue customer invoices now, not in February.
Your Pre-Shutdown Checklist
- Confirm your dates. Closing and reopening dates, in writing, to staff and clients.
- Check your award. Notice, direction to take leave and public holiday rules.
- Plan leave balances. Know who is short before you announce.
- Map pay dates and super. Count seven business days from each pay run.
- Sort bonuses early. Tell us what you're paying and when.
- List every payment due in December and January. Wages, rent, loans and suppliers.
- Tell us your shutdown dates. We'll work through your pay runs and payments with you.
So What Does This Mean for You?
A shutdown is a planning job as much as a break. Sort your people, your pay dates and your payments before you close, and you can actually switch off.
Closing for Christmas? Let's Plan It Together.
We'll work through your pay runs and payments with you.
Talk to the Diverse Team