Posts Categorized: Employment matters

STP and super payments

The roll-out of Single Touch Payroll (STP) has proved to be an interesting process! 

For some, it just meant clicking another button or two within their payroll program.

For others it meant changing the whole way they processed their payroll.

It has also uncovered some interesting practices.

We have been somewhat surprised to find that some clients weren’t making their employee SG super payments through a SuperStream, nor using a super clearing house. The former is the payment method, the latter is the notification of employee’s contributions.  We have also been surprised to learn that super funds, like some of the really big ones, have still been accepting cheques.

There are free solutions out there but the best solution is almost always the one built within your payroll software. Whilst there may be a cost, it is nominal and avoids double handling.

Please call us if you would like to discuss your situation and needs.

WorkCover remuneration certification

It may be time to complete your 2019 WorkCover remuneration certification. Large employers are required to submit early.

Other employers have delayed lodgement dates. That said, it still may be in your interest to lodge soon.  This is particularly the case if your remuneration will be significantly less in 2019/20 than for 2018/19.

You will get back what you over pay based off their estimate; but why over pay in the first place.

You will also ensure it is lodged.  Many employers forget to lodge and suffer from WorkCover’s default 20% annual increase.  So get it done now when you have finalised and issued the PAYG Payment Summaries.

Are STP extensions the answer?

Struggling with Single Touch Payroll (STP?

Or have you yet to take action?

There are two things you need to do:-

  • Move to a payroll software solution.
  • Tidy up your HR records.

We can help you with both.

So whilst there are extensions available, we recommend not relying on them – it just creates more work (and therefore cost) later.

Take the first step right now by contacting us (the first meeting is free).

STP starts next week!

Single Touch Payroll (STP) starts next week!

From Monday 1st July all businesses will be required to report to the ATO each employee’s gross pay, tax and super no later than the day of payment.

Whilst there are extensions available we generally recommend not using them as it only creates more work later – and therefore cost.

If however you need to rely on an extension, then you must have applied for one by week’s end.

Either way, you have to do so something.

We have been taking our clients through the transition journey principally by way of a series of weekly preparatory emails.

If your accountant hasn’t helped you then it is time to change accountants!  Contact us below and we can discuss how we can help you.

 

 

Super contribution warning

A quick super contribution warning.

In order to claim a tax deduction for a personal or employer super contribution, it must be paid by year end.

This year is a bit of a trap with June 30 falling on a Sunday.

Another trap is that I just read that the ATO’s own employer super clearing house requires payment to be made by the close of business on Monday 24th June.  Pay later than that and the contribution will go into the next financial year.  That’s a real problem if you have retired and are aged over 65 as you will thereby breach the work test rule in the first week of July 2019.

Some clearing houses and super funds close off earlier than the 24th.  Make sure you now what you cut-off dates are.

Be ready for STP

Single Touch Payroll (STP) will be here in just 4 weeks!

It is critical to use the month of June to prepare yourself.  Don’t fall for the trap of delaying and then finding you can’t meet your first pay run in July.

Our clients will be receiving weekly STP reminders and action steps.  Please fill in the contact form if you want either STP assistance or to simply receive the weekly STP emails.

 

Single Touch Payroll webinar

Are you wondering what you should be doing in preparation of Single Touch Payroll?

Do you know that from 1st July all employers in the country are required to report how much every employee will be paid, the PAYG WH tax thereon as well as what their super will be at the time of payment?  And yes whilst there are exemptions it just means more work later.

You need to be ready for Single Touch Payroll now or in the process of getting ready.

So do you know what you need to do before 1st July?

So do you know what you should be doing from 1st July?

If you can’t answer these questions then you need to attend out STP webinar on Tuesday 28th May at 5pm.

You can enrol by clicking on the following link:-

https://zoom.us/webinar/register/a10dbea62247ddf5d746f627e8486654

 

Single Touch Payroll

Single Touch Payroll will apply to all employers from 1st July 2019.  Whilst extensions have been offered we recommend not relying on them in the majority of cases as it will create more work later.

There are a number of things to do and matters that as an employer you need to have in order before July.  Keep an eye out for notification of our upcoming webinar.

In that webinar we will set out the when, what, why and how of Single Touch Payroll.

We look forward to seeing you then.

Contractor or employee?

Contractor or employee? You better get it right as the implications for doing so can be financial crippling.  And then there is the time and mental frustration of dealing with such disputes.

The critical thing is to get the classification right.

You then have to get the right documentation in place.

  • If they are an employee then you need to do a few things including determine the right award, give them a letter of offer and issue the National 10 Employment Standards.
  • All too many business owners fail to document a contractor relationship. Agreements are looked through by investigators to avoid shams and find the true relationship. Sadly though, some business owners lose the fight as they have don’t have a contractor’s agreement to prove their position – leaving the investigators to pretty much accept whatever the payee claims.

Does it cost to establish a contractor’s agreement? Yes (but it’s insignificant considering what it can save you)

Should you get one off the web? No (how many times do do it yourself lawyers use say a USA agreement or be clueless about the differing considerations used by the ATO, State Revenue Office and WorkCover).

Will the process reduce the possibility of any claim as both parties are fully aware of the relationship? Absolutely.

We would welcome the opportunity to discuss your situation.

Upcoming March quarter deadlines

For those of you who are employers, Friday 26th April is the end date for satisfying your SG super obligation for the March quarter.  Late payments will attract interest and penalties.  As such, this obligation is an employer’s most important commitment so best not to leave it until the last minute; particularly as payments through some super clearing houses take 5 days or more to clear.

For those who lodge a paper (non-electronic) quarterly BAS or IAS, your March quarter activity statement is due to be lodged by Monday 29th April.

Personal services entities

If you have a personal services entity (you will know if this relates to you as we will have discussed this with you many times over the years), your entity will be required to pay at least 80% of its income to you as salary/wage and remit the tax thereon within this BAS.

Lodgement tip

Please note that lodgement of an activity statement (even if it is nil statement) and payment are two separate requirements. Late lodgement attracts a minimum non-deductible fine of $210 for every 28 days that a form is lodged late whereas as late payment results in an interest levy. More importantly, BAS’s and SG super which is not reported and remains unpaid after 3 months becomes a personal debt of directors (please refer to the September 2012 edition of Tips and Traps for further details on the Directors Penalty Notices system) – and the ATO are actively issuing DPN notices.  That said, the ATO are agreeable to entering into payment arrangements.

STP reminder

And a quick reminder about Single Touch Payroll (STP). STP will be mandatory for all employers from July 2019.  You will shortly receive an introductory letter which will be followed by a series or reminders and steps to be implemented before 30th June.