Now June 30 has passed, business it is time to put on your administration hat and get that annual reporting done.
- Year End Payroll Procedures
Employers not yet enrolled with Single Touch Payroll will need to prepare PAYG Summaries and the Annual PAYG Statement. This should only apply to those that employ only family members. If you have not received PAYG Summaries and the Annual Statement please contact our office to obtain copies. If you only employ family members the deadline to enrol in Single Touch Payroll has been extended to 1 July 2021. Please contact us if you wish to enrol at an earlier date. Remember if you employ anyone who is not a close family member you will be required to enrol immediately.
Employers enrolled in Single Touch Payroll will need to perform an End-of-Year finalization in their software. This process will involve the following steps:
- Reviewing the total pay of each employee to ensure the correct amount is reported.
- Pay attention to employees that were terminated during the year to ensure the correct break up of wages is reported.
- If there is a reportable fringe benefit amount it will need to be included as part of the finalization process
- Marking as final and filing with the Australian Tax Office.
Most software providers have made this process as straight forward as possible. You are able to finalize employees one at a time so that if you need to clarify something for one employee it does not stop prevent you finalizing some others. This is particularly relevant if you wish to finalize your employees pay records but not your own. In addition no Annual PAYG Summary is required.
Finalization must be completed by 14 July if you have more than 20 employees, 31 July if you have less than 20 employees and 30 September for those employed in their own business.
- Taxable Payments Annual Report (TPAR or Contractors Statement)
The Taxable Payments Annual Report has previously been known as the Annual Contractors Statement as it was initially applicable to the Construction industry. This is now extended to a significant number of additional industries that employ contractors. If your industry is listed below then it will apply to any payments you have made to contractors, subcontractors, consultants or independent contractors:
- Building and Construction Services (including services peripheral to this industry such as trades, floor coverings, air conditioning, architecture etc.)
- Cleaning Services
- Courier Services
- Road Freight Services
- Information Technology Services (IT)
- Security, Investigation and Surveillance Services
- Mixed Services (if you supply to one or more of the services listed above, this will include such things as florists who pay delivery drivers, event management teams etc.)
- Government Entities/Services
The information to be provided is the Contractor name and address, ABN and the gross amount you have paid them including GST. Reports need to be made in a specific format. We have paper copies of the relevant form available or alternatively it can be lodged via the business portal (bp.ato.gov.au) or via our Tax Agents Online facility.
- Superannuation Payments
Superannuation for the June quarter MUST be paid by July 28. There are no extensions and failure to pay by the due date will require lodgement of a Superannuation Guarantee Charge Form with the Australian Taxation Office. This will incur penalties and interest. If you have not received the Superannuation details from an employee in time for the payment you must make the payment to your default fund and notify them.
- Business Activity Statements and Cash Flow Boost/Stimulus
On lodgement of your June Business Activity Statement you will receive a further Cash Flow Boost/Stimulus that is equal to the PAYG Withholding you are reporting. There are two exceptions to this rule:
- If you have received $50,000 already you will receive no further boost for the June BAS. If you have not yet reached $50,000 but will do so with the lodgement of this BAS, you will only receive the amount that takes you receipt up to $50,000. This is because the first phase of the Cash Flow Boost/Stimulus program was limited to $50,000.
- If you received $10,000 on your March or April Activity Statements and your total PAYG Withholding for the March to June period is less than $10,000 you will not receive any credit. This is because the minimum amount of $10,000 has already been received by you and your total claim does not exceed $10,000.
In addition, you will receive an additional credit on your BAS for June.
The second stage of the cash flow boost/stimulus program runs from June to September. Your entitlement to the Stage 2 payments is calculated as follows:
The ATO will add up all the cash flow boost/stimulus credits you obtained under stage 1. (March to June). The total will be credited to your June to September Activity Statements as follows:
- If you only lodge quarterly you will receive 50% of the Stage 2 amount credited to your June Activity Statement with the remaining 50% credited to your September Activity Statement.
- If you lodge monthly you will receive 25% of the Stage 2 amount credited to your June, July, August and September Activity Statements.
Preparing and lodging your June BAS in a timely manner will ensure the receipt of these payments and credits in a time frame most beneficial to your business.
As always if we can be of assistance do not hesitate to contact us.