Remember that all employee superannuation guarantee contributions for the December quarter should be paid into funds by 28 January, 2012.

Employee super contributions actually paid by this date will be eligible for a tax deduction. It is important to meet the 28 January deadline in order to qualify for a tax deduction and avoid having to pay the super guarantee charge.

The December quarter covers the periods of October, November and December, 2011. Please note that the super guarantee applies to all employees; including directors in receipt of a wage.

The Tax Office is focussing much of their compliance efforts on uncovering instances of employers not understanding and meeting their super obligations. Common mistakes identified by the ATO include:

• paying insufficient super contributions for eligible employees
• missing the quarterly cut-off dates
• not understanding that in some circumstances super should be paid for contractors
• not keeping accurate records
• not passing on an employee’s tax file number to their super fund
• not lodging a Superannuation guarantee charge statement if employees’ super is not paid into to the fund by the due date or is not the correct amount.

If you have any questions or wish to speak with us about your obligations, please do not hesitate to contact our office on 1300 35 22 35.

New tax thresholds were introduced at the start of the financial year for payroll tax in NSW. The annual payroll tax threshold is now $678,000 and the rate is currently 5.45%.

From 1 July 2011, the monthly threshold is:

Remember that your monthly payment is due just 7 days after the end of each month. Annual reconciliations are due 21st July.

I was at the NSW Office of State Revenue website earlier in the week and noticed they have an online payroll tax course to help employers unnderstand payroll tax. I must admit, I haven’t had time to check it out yet  but if you are registered for Payroll Tax (or think you might need to be), it could be worth a look at http://elearning.osr.nsw.gov.au/payrolltax/.

The NSW Government is also introducing the Jobs Action Plan from 1 July as an incentive for businesses to employ more workers (as opposed to the big, fat dis-incentive payroll tax offers you ). If your business employs staff in positions that are new jobs, you may be eligible to receive a payroll tax rebate.

For more information on the new scheme and to find out if you’re eligible for the Jobs Action Plan, visit the Rebate Scheme (Jobs Action Plan) page at NSW OSR.

Please remember that all employee superannuation guarantee contributions should be paid into funds by 28 July, 2011.

All employee super contributions actually paid by this date will be eligible for a tax deduction. It is important to meet the 28 July deadline in order to qualify for a tax deduction and avoid having to pay the super guarantee charge.

The June quarter covers the periods of April, May and June, 2011. Please note that the super guarantee applies to all employees; including directors in receipt of a wage. 

The Tax Office is focussing much of their compliance efforts on uncovering instances of employers not understanding and meeting their super obligations. Common mistakes identified by the ATO include:

• paying insufficient super contributions for eligible employees
• missing the quarterly cut-off dates  
• not understanding that in some circumstances super should be paid for contractors
• not keeping accurate records
• not passing on an employee’s tax file number to their super fund
• not lodging a Superannuation guarantee charge statement if employees’ super is not paid into to the fund by the due date or is not the correct amount.

If you have any questions or wish to speak with us about your obligations, please do not hesitate to contact our office on 1300 35 22 35.

ASIC fees are being increased based on the Consumer Price Index for the March quarter 2011. This includes a rise in late payment fees. The following are a few of the more common fees which will be increasing from July 1st:

Registration of a Pty Ltd increasing to $426 (up from $412).

Change of company name is going up to $351 (from $340).

First late payment fee is rising to $69 (currently $67).

Second late payment fee now $287 (currently $278).

On 1 July 2011 there will also be an increase to the annual review fee for companies. Proprietary companies can expect to pay ASIC $226.50 for the Annual Company Review.

From 1 July 2011, the Paid Parental Leave Scheme will become mandatory for all businesses. Paid Parental Leave Scheme provides eligible working parents with 18 weeks pay at the National Minimum Wage  (see recent changes to minimum wage).

If you have eligible long-term employees who have or adopt a child from this date, you must register for Paid Parental Leave.

Once you’ve registered, funds for Paid Parental Leave will be provided to you before your employee’s usual pay cycle. Your employee can choose to receive Parental Leave Pay before, after, or at the same time as employer-provided paid leave such as recreation leave and employer-provided parental leave.

I recently registered our own business online for the PPL Scheme and found it relatively quick and painless (I expect the real pain will come with the additional paperwork burden and payroll requirements later on).

Centrelink  has a wide range of information on Paid Parental Leave, including:

• an employer toolkit  outlining what you need to know about the scheme and how to implement it in your workplace
• a range of useful publications  for employers
• frequently asked questions .

You can register for Paid Parental Leave online through Centrelink’s Business Online Services  portal. You will need your business’ ABN, registration details, and contact details to register online. The service required me to have an Auskey or ATO digital certificate installed on my computer. If you don’t have this, follow the instructions online (you may need to register over the phone).

December Quarter Super Reminder

Please remember that all employee superannuation guarantee contributions should be paid into funds by 28 January, 2011.

All employee super contributions actually paid by this date will be eligible for a tax deduction in the 2011 financial year.

It is important to meet the 28 Janaury deadline in order to qualify for a tax deduction and avoid having to pay the super guarantee charge.

The December quarter covers the periods of October, November and December, 2010. Please note that the super guarantee applies to all employees; including directors in receipt of a wage.

If you have any questions or wish to speak with someone about your obligations, please do not hesitate to contact our office on 1300 35 22 35.

A free electronic calendar is now available on the Tax Office website to help small businesses meet their tax and superannuation guarantee obligations throughout the year.

Tax Commissioner Michael D’Ascenzo said Your small business tax calendar provides reminders of lodgement due dates for small businesses and bookkeepers.

If you run:

• more than one business, you can set up a unique tax calendar for each business
• a bookkeeping service, you can set up a unique tax calendar for each of your clients.

“You can personalise the calendar quickly and easily by answering some simple questions about your business,” Mr D’Ascenzo said.

“Based on your individual circumstances, the calendar records all the due dates you need for the financial year, such as when to lodge your business activity statement and when to pay your employees’ superannuation.”

The updated calendar can now also be used by charities, not-for-profit organisations and deductible gift recipients to help them meet their tax and superannuation obligations.

Small businesses and organisations can also:

• record notes and reminders, such as appointments or payment due dates
• update the calendar at any time if their business structure or reporting obligations change, and
• print a one-page yearly planner for tax and superannuation obligations and due dates.

The calendar is designed for small businesses, including sole traders, with a turnover of less than $2 million, as well as charities and not-for-profit organisations.

The latest version of the tax calendar is now available and we encourage businesses to download a copy as it contains up-to-date information for lodgement and payment due dates.

To download a free copy of the tax calendar, visit the Tax Office website at www.ato.gov.au/TaxCalendar. The calendar is also available on CD by calling 13 72 26.

Recent changes in payroll reporting by Australian Government legislation has meant that salary sacrifice decisions now have to be recorded in more detail by employers and employers need to supply information on the salary sacrifice arrangements to the Australian Taxation Office. The reason for these changes is that employees have been able to notionally reduce their income due to salary sacrifice arrangements. This has made the taxpayer eligible for some other government programs, which they may not have been eligible for, other than for the benefit from the salary sacrifice arrangement. The most significant salary sacrifice item is superannuation contributions.

The concept of salary sacrifice is still legitimate and acceptable, however the flow on effect that, in the past, has enabled taxpayers to gain other government benefits, has been changed to ensure government monies are allocated where the government interprets the greatest need. The government’s view is that, if a taxpayer can afford to sacrifice a significant amount of his or her income into superannuation, then perhaps that taxpayer may not be eligible for other government benefits. For this reason all payroll reporting will need to include new features effective from 1st July 2009. If you are generating your payroll on your computer then your software provider will have to develop upgrades to ensure that you accurately record additional information from 1st July 2009.

If you have any questions regarding the changes in payroll reporting, do not hesitate to contact us.

The Tax Office today reminded people who received an income tax bill for 2007-08 that payments begin to fall due from Friday 21 November 2008.

The Tax Commissioner has advised people to check their notice of assessment and pay any amount owing by the due date to avoid penalties for late payment.

“Due dates vary, so check your notice of assessment to ensure you don’t miss your payment deadline.

“If you think you may not be able to pay your income tax bill by the due date, contact the Tax Office on 13 11 42 as soon as possible to discuss your situation,” he said.

People who haven’t lodged their tax returns yet should do so as soon as they can.

The Tax Office today reminded businesses that June quarterly activity statements and super contributions are due by Monday, 28 July 2008.

ACTIVITY STATEMENTS:

Deputy Commissioner Geoff Robinson said the quickest, easiest and most secure way to lodge activity statements and pay any amounts owing is using the online business portal.

“Businesses may be eligible for a two week extension on their activity statement if they lodge and pay online.

“If you are concerned that you may not be able to meet the deadline or pay your total tax debt, contact the Tax Office as soon as possible on 13 28 66.

“We will work with you to put in place a suitable payment arrangement to help you meet your obligations,” Mr Robinson said

SUPERANNUATION GUARANTEE:

Employers must also pay all super contributions for the June quarter by Monday, 28 July 2008.

“Any employer who fails to meet the deadline must lodge a superannuation guarantee quarterly statement and pay the super guarantee charge to the Tax Office.

“Remember that if an employee made a choice of super fund, their super contributions must be paid to that chosen fund,” Mr Robinson said.

The Tax Office also reminded businesses that from 1 July 2008 they must use ordinary time earnings to calculate super guarantee contributions for their employees.

Media Release 2008/39

11 August:
Quarter 4 (April – June 2007) activity statements: final date for paper or ECI lodgment and payment.

14 August:
PAYG withholding payment summary annual report – final date for lodgement.

Due date for reporting departing Australia superannuation payment (DASP) data records for the 2006/07 year that form part of the PAYG withholding payment summary annual report.

21 August:
July 2007 monthly activity statements: final date for lodgment and payment.

Final date for monthly GST reporters to elect to report GST annually.

28 August:
Due date for lodgment of the Superannuation guarantee charge statement – quarterly and payment of the superannuation guarantee charge for quarter 4 (April/June 2007) if sufficient contributions were not paid on time.

31 August:
Reasonable benefits limits (RBL) reporting – due date for funds to correct any errors on previously lodged reasonable benefits limits reports.

Remember to lodge you fourth quarter Business Activity Statement (BAS) with the Tax Office by the 28th July.

14 July: