Are your employees being paid correctly?

As a seller you should be making sure that your employees are being paid at the correct rates.  If they are not you will need to correct this as well as provide the information to any buyer about recent pay rises.  If a buyer finds that any employees have been paid incorrectly, the most likely scenario is that they reduce the amount they are willing to pay for the business. 

Sellers also need to consider staff entitlements, this catches many business owners out.  Staff entitlements are always adjusted on settlement day, usually at a rate of 70% of entitlement balance.  This includes annual leave, sick leave and also long service leave for any person that has worked for the business for a period of five years or longer (include casuals in your calculations)

If you would like more information about this, please give us a call.