Deadline for 2016 PAYG Payment Summaries

The deadline for 2016 PAYG Payment Summaries being lodged was 14th August.  Whilst employee should have received their PAYG payment summary by 14th July, employers had until 14th August to lodge a copy of each individual summary as well as the PAYG Payment Summary Statement.

If you haven’t lodged these yet, please do so immediately to avoid the imposition of any fines. And for those lodging paper copies, please remember to keep a copy of the PAYG Payment Summary Statement for your records.

There are however two exemptions:-

  1. September 30 where we as tax agents have been involved in there preparation.
  2. The date of lodging the 2016 Tax Return where only family members have been employed.

Even though you may have until as late as March 31, 2017 to certify your 2016 WorkCover remuneration, now would be a good time to do so, particularly if your estimated remuneration for 2017 will be less than for 2016.

And as always, please don’t hesitate to ask as for assistance with any part of this.

At MRS, we will spend today planning for your success tomorrow.

 

Lessons from the Olympics

And so another Olympics has come and gone. Two things struck me whilst watching these games – how small the crowds were and the number of shows of sportsmanship amongst the cut and thrust of a once in a four year competition.  I was also reminded about the importance of a coach.

This was particularly evident in “turn” events such as the high jump, long jump and pole vault. After their turn, every athlete seemed to engage their coach in a quick chat.  No doubt it was usually positive affirmation but it also seemed to frequently be a reminder of the basics; to follow a system, to do the right things the right way.

So what systems do you have in your business? How clear are those systems?  Do you practice them?  Does your team clearly understand what they are and are trained in them?  How often do you focus and remind yourself about doing the right things the right way – or are you just dealing with the issue of the day (whatever that may be and regardless of how unimportant that may be in the long run).

So who is your coach? Are you guilty of trying to wearing both hats?  Who is reminding you and training you on doing the right things the right way?  Maybe it’s time for you to appoint a coach.  We can help you as we do with so many clients – and from that we can provide you with insight and skills into many areas that we have gained from a vast array of experiences.  Our service offering will be further improved with the introduction of an upcoming key performance indicator monitoring system – keep an eye out for that.

 At MRS, we will spend today planning for your success tomorrow.

Lencioni & The Five Temptations of a CEO

I took the opportunity whilst away last week to read a couple of books including another by one of my favourite business authors. On this occasion, I read Patrick Lencioni’s The Five Temptations of a CEO.

Not all of the temptations explored relate to everyone in the same way. But as no-one is perfect in all areas, some of the temptations will resonate more for some than with others.

The two that resonated most with me were:-

  • Choosing certainty over clarity – in exploring this, Patrick sets out that too much time is wasted in analysis rather than getting on with it and at the risk of clearly setting out the desired result. Whilst products and services must be precise in their delivery, the CEO should not be aiming for precision themselves in the filling their role; if they drive to be precise, they risk over analysis and paralysis within the business.
  • Choosing harmony over productive conflict – Patrick argues that the best decisions acknowledge all perspectives. Whilst all perspectives and ideas can’t be agreed upon, they can be considered. As such, discord and opinions should be encouraged in an environment that encourages debate and a consensus approach. This reminded me of talk by a CEO of one of the world’s major franchises in which he spoke at length about the blood on the floor during meetings but how they walked out united and focused on the same goals and actions.  That franchise made many difficult decisions that saw it transition successfully through a period of great change in consumer behaviour.

Unlike all other Lencioni books, don’t start reading it before you go to bed.  If you do make that mistake, you won’t sleep!

 At MRS, we will spend today planning for your success tomorrow.

PAYG Withholding Rate tables

For those of you who need to access PAYG Withholding Rate tables, we now have an easier option for you in that our new firm app links directly to the ATO’s very useful PAYG WH (wages tax) calculator.

I take this opportunity to remind you that PAYG Payment Summaries were due to be issued to employees by 14th July and that copies of those Payment Summaries as well as the PAYG Summary Statement are to be sent to the Tax Office by 14th August.  Please ensure you keep a copy of those documents.  However, employers that employ only family members have until the date of lodging their 2016 Tax Return to lodge their payment summary stationery (provided they have a good lodgement record).

I also take this opportunity to remind you that the Superannuation Guarantee rate remains at 9.5%.

Even if you have tax tables within your software, we remind you download our firm app which has many useful tools and calculators. It is designed to be on your front screen from where you can undertake any number of business activities and to attend to your tax affairs.  Tell your family, friends and business colleagues about it as there the app has many uses for everyone.

Please do not hesitate to call us if you have any queries in relation to the above or require any assistance in loading a new tax table into your software.

At MRS, we will spend today planning for your success tomorrow.

An app for your log book

The one thing that clients complain about most is having to prepare a log book. This became even more important in the last financial year with the removal of two of what were once four methods of claiming a motor vehicle.  We can now make that task easier as we have an App for your log book.

Our firms App has been just published in the Play Store and iTunes.

Simply search on Maggs Reid and at the top list you should see our logo, Maggs Reid Stewart and Digital Disruption Solutions.  Simply download the app, go to the ATO button which will then let you run a log book by using Google maps.  It cannot be made any easier.  And it’s one of the main reasons we decided to publish our own App.

Although more content is still to be published, the App is already full of really useful tools, calculators and information.

As have we advised in newsletters and blogs, one can now only claim a car under the log book method or cents per kilometre method. You either have a complying log book or you don’t.  The problem is if you don’t, your maximum claim under the cents per kilometre method is limited to $3,300.   So download that app!

At MRS, we will spend today planning for your success tomorrow.

 

Year end processing tips

We are accountants because we like being accountants. But I can assure you that we gain no joy from fixing fundamental book-keeping tasks, particularly when the result is our fees being higher than what they should otherwise be.  We therefore provide you with the following year end processing tips.

You can make our life more enjoyable and reduce your accounting fees by attending to the following accounting tasks before inviting us to work on your file:-

  • Reconcile all bank accounts, loans and credit cards.
  • Investigate any reconciling items.
  • Reconcile payroll before issuing any payment summaries.
  • Count and value stock.
  • Review last year’s depreciation schedule and advise us what has been sold or scrapped.
  • And the most time consuming one – do not change a period’s figures if we have lodged a Tax Return or BAS for that period. If you need to change an old debtor or creditor balance or make some other change then please call us and we will happily either (1) advise you how to correct the item, (2) use Logmein to make the adjustment and/or show you how to make the adjustment without affecting the prior period, or (3) easier yet, we will log into your cloud accounting system and make the change the correct way.

You can also find how to guides for MYOB, Reckon, QuickBooks Online and Xero at:-

 

MYOB

http://help.myob.com/wiki/display/ar/Closing+a+financial+year

 

RECKON

http://kb.reckon.com.au/issue_view.asp?ID=4155

 

QUICKBOOKS ONLINE

http://www.intuit.com.au/r/product-updates/end-financial-year-using-quickbooks-online/

 

XERO

https://help.xero.com/au/Q_YearEnd

 

At MRS, we will spend today planning for your success tomorrow.

 

 

 

Super Stream tips

Some employers may think it is another compliance burden. What it is though is a streamlined system – and many experienced book-keepers that I have spoken to have been glowing in their stories about the great time savings even in these early stages.  Thankfully, gone are the days where an employer with 18 employees can be paying separately into 8, 10 or even 18 different funds – now they have just one reporting and payment process.  As some are still to register, here are some Super Stream tips.

  1. You can use either your payroll software, a clearing house or one of the large super funds.
  2. I would avoid using the large super funds and anything but the ATO’s clearing house as their processing times can be as long as 10 business days – which means to meet the deadline of the 28th day after quarter end, some will have to report and contribute two weeks beforehand.
  3. The ATO provides a free clearing house for those employers with less than 20 employees. Not only is it a free service but contributions made to this clearing house are treated as being made on the day they are made to the clearing house (as it is an approved clearing house).
  4. It is called the Small Business Super Clearing House (SBSCH). You can register for it at – https://www.ato.gov.au/business/super-for-employers/paying-super-contributions/small-business-superannuation-clearing-house/#
  5. To register, you will a number of items at your fingertips.
  6. Apparently the registration works best when done in Chrome.
  7. Employers have since 2005 been required to provide their employees with choice of super fund (and which nominates a default super fund if the employee does not exercise their choice). An old form though will not have some information that you will need to complete the registration and make payment.
  8. You will need the USI (Unique Superannuation Identifier) and ABN of each super fund.
  9. You need every employee’s TFN and their super fund member number.
  10. You can get the USI from your employee’s last member’s statement, by ringing the fund or checking a USI register which you can find at http://superfundlookup.gov.au/DownloadUsiList.aspx
  11. If an employee nominates their complying self managed super fund, then they will need to provide you with its electronic service address.
  12. Please be very careful when selecting the fund when setting up your clearing account as payment to the wrong fund will mean you still have to pay the correct fund. The registration will bring up the name of the selected fund but as many names are very similar, please ensure you select the right one.
  13. You will be asked for your banking account details in case there is a refund to be paid back.
  14. You will still need to make payment by EFT or BPay; payment will not be automatically deducted from your nominated bank account.
  15. Please note that you will be issued with a different account number to pay into for each entity.  To avoid paying into the wrong account and having the payment returned, you will need to give each SBCH bank account a different name within internet banking.
  16. It is a legal requirement that you send the payment and message on the same day – so don’t do it at 5 minutes to 6pm and then miss the banking cut-off.

Please don’t hesitate to ask us any questions you may have.

You may also like to watch the ATO’s video (but don’t panic s it was published before the October extension was announced).

At MRS, we will spend today planning for your success tomorrow.

 

Lencioni’s 4 meeting secrets

I just enjoyed a week’s break with my family. Plenty of catch up sleep after June and playing games as well as sports & activities with my family.  The warmer weather was also a welcome change.

Holidays are also a time I enjoy for the chance to read.  I almost finished a fourth book – and yes some of them were on the short side. A common problem with too many business books are that they are overly long.  They might have a good idea or two but spend too long conveying them.

Patrick Lencioni’s books are a welcome exception to this common fault. They are easily read in that they are page turning fables built around a central theme.  Moreover, they conclude with an excellent summary with free tools to access.

During the holiday I read one of his older books Death By Meeting.  Lencioni proposes that there should be four types of meetings:-

  1. The daily check in. It’s nothing more than a 5 minute meeting about what is to happen that day. Everyone is to attend.
  2. The weekly tactical. This is a structured meeting focused on short term tactical issues. Lencioni recommends that it starts with everyone indicating their priorities for the week before reporting on KPI’s. Only then is the agenda set to address what has come to light as the most important issues. This meeting addresses what people are doing now.
  3. The monthly strategic. This meeting is only for the executives in which they analyse, debate and decide upon a few (and only a few) critical issues that matter most to the business.
  4. The quarterly off-site review. Lencioni contends that spouses should not attend, its best to be close to home to minimise time losses and should only be run by an outside facilitator who is both known and trusted by the participants.

Obviously many businesses may be too small to be to run all of these. But may be for those single operators, it is simply a matter of setting aside time every day or week to sit, think and plan.

I commend this book to you as well as Getting Naked, The Five Dysfunctions of a Team and one of his newest ones The Advantage. And like any good business book, don’t read them before going to bed if you want to sleep!

For more free tips, why not visit the weekly blog section at http://mrsaccountants.productivation.com.au.  And from later this month you can visit our app which will be full of useful tools and calculators!

At MRS, we will spend today planning for your success tomorrow.

Last minute tax saving tips

And so another tax year draws to a close!  But there is still time to legitimately  and legally adopt last minute tax saving tips to improve your tax position by adopting one or more of the following strategies:-

  • Buying items such as stationery, printer cartridges, stamps, etc by Thursday 30th June.  Those of you who entered the Simplified Tax System (STS) by 30th June 2005 (and are therefore automatically assessed on a cash basis) may wish to pay any bills not due until July like your phone bill, rent, insurance etc.   Paying your accounting fees is also recommended!
  • Superannuation is of course a major deduction provided it is paid by 30th June.  Contributions into super are taxed at only 15% whereas your marginal tax rate may be much higher at 19%, 32.5%, 37% or 47% – as well as Medicare Levy at 2% and a 2% Temporary Budget Deficit Repair Levy.  A June contribution that doesn’t clear until July will be not be deductible in 2015/16 and will count against next year’s contribution limit.  It is now too late to make payment by B-Pay.  And beware of making EFT payments after your bank’s night time cut off.
  • Whilst there are minimum levels of super to be paid by employers on behalf of employees under SGC provisions, your own business conducted through a company or trust can claim a deduction up to $30,000 ($35,000 if you were 49 on 1st July 2015 – i.e. those who now 50 or older).
  • For those who are self employed, the same limits apply.
  • STS taxpayers are now known as Small Business Taxpayers (SBTs).  SBTs also include taxpayers with an annual turnover under $2,000,000.  As we have previously highlighted, SBTs can claim a full deduction for any assets acquired costing less than $20,000 (excluding GST).
  • From 1st July 2016, the threshold for being classified as a small business rises from $2,000,000 to $10,000,000 meaning that they too can take advantage of the $20,000 asset write-off from this Friday.
  • Please keep in mind that the $20,000 write off is due to expire a year from tomorrow.
  • Furthermore, SBT taxpayers can claim half a year’s depreciation on acquired assets that cost more the above limits – even if the asset is purchased on the last day of the year.
  • SBT taxpayers can also claim a full deduction for payments such as insurances, rent and the like which cost more than $1,000 even though the service period runs past 30th June and into the next financial year.
  • For those of you who receive this e-mail that are employees or rental property owners, you can claim a complete write off for assets costing less than $300.
  • If a property is jointly owned, then you can claim the full cost of assets costing less than $600 (meaning you claim less than the $300 limit each).
  • Investors can claim prepayments in full.  An investor with a property or share loan can claim a deduction for 12 months prepaid interest.  Please note that the ATO requires that for the prepayment to be claimed, one must benefit through a lower interest rate (for which you need to keep proof).
  • For those who have already generated a large capital gain, consideration should be given to selling other investments that have an unrealised capital loss.  Those with no or minimal employer SGC support should consider making a deductible contribution into superannuation to offset the tax on the capital gain (but speak to us first).
  • From 1st July 2004, persons under 65 no longer need to be working or have ceased employment within the last two years in order to make a deductible super contribution.  Consequently, those with large incomes can greatly reduce their tax burden by putting monies into superannuation.  With super pensions paid to those older than 60 now being tax free, the tax savings are greater than ever before.
  • Please note that those over 65 but under 75 can only contribute into super only after they have satisfied a work test.
  • If you are about to sell an asset which will generate a capital gain, consideration should be given to selling it after 30th June.  This will defer the payment of any capital gains tax liability until after 30th June 2017.

We have considered these matters when undertaking our pre year end client business reviews.  However, do not hesitate to contact us should you wish to clarify any matter.

We take this opportunity to remind seriously consider the QuickBooks Online offer. The benefits and bonuses are incredible.  You can at least start with it and if you don’t like it, stop within say three months and it will cost you no more than $40.

We also reminder you that Super Stream has been deferred for 3 months – QuickBooks Online will provide the most cost effective solution for many.

For more free tips, why not visit the weekly blog section at http://mrsaccountants.productivation.com.au.  And from next month you can visit our app which will be full of useful tools and calculators!

At MRS, we will spend today planning for your success tomorrow.

 

 

Getting your stocktake right

I had an interesting meeting with a new client during the week. They were referred to me as they couldn’t understand why they had the same money after a year in which their sales had doubled.  They aren’t trained in accounting and sadly their accountant didn’t help educate them as to what to identify and track in their business.  In particular, they weren’t assisted in the importance of getting your stocktake right.  Furthermore, their cost of goods sold was grossly understated by virtue of excluding direct costs of production other than materials purchased– so much so that their real trading margin is closer to 15% than it is to the stated 50%.  Such a discrepancy can only result in wrong decisions which can prove dangerous if not fatal.

The sad thing is that I have no way of knowing their true position. The value recorded as closing stock was unchanged for the two preceding years and the most recent year, being a year of doubled sales, was less than the year before!  That could be the case, but that is most unlikely.  Moreover, the value of closing stock was a round number in all years; a very round number.  It stunk of sticking a number in the Tax Return that was convenient for tax purposes but in no way reflected the real position.

Fortunately, they have the opportunity to rectify this by undertaking a proper stock by 30th June.  That said, the gross margin for 2015/16 will still be wrong as the opening stock is wrong.

From next year though with the correct opening stock and by tracking month end closing stock, they will have a firm grip on where they are where they are headed. And why is this important – read the following blog on why not all growth is good.

http://www.mrsaccountants.com.au/2015/02/

If you would like assistance with getting your stock take right, please ask for a copy of our checklist or call us to discuss your particular situation.

 

At MRS, we will spend today planning for your success tomorrow.