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How much tax should be withheld from payments made to employees and other workers?
The ATO generally require that PAYG tax is withheld on wages, directors fees, bonuses and some contractor payments. The amount of tax to withhold varies depending on various circumstances such as HEC debts, residency status, Medicare levies and more. Please contact Accounting Revolution for further information. The following link may also useful for access to general information and a various calculators to assist in estimating amounts of tax to be withheld.
How do I know if I need to pay superannuation for employees and contractors?
Most business owners realize that they have a liability to pay super for employees earning over $450 a month. The devil is in the detail though and many business owners don’t realize that superannuation, in many cases, needs to be paid for contractors. Superannuation audits are common and the heavy fines that can be incurred and the loss of potential tax deductions needs to be considered carefully. Care needs to be taken that the correct amount of super is paid and payments reach the fund by the due dates. For expert advice please contact Accounting Revolution to discuss your circumstances in detail. The following links also provides information that employers may find of interest when evaluating the superannuation liabilities of the business.
Am I providing a Fringe Benefit and need to pay Fringe Benefit Tax?
Employers may find themselves in a situation where they have provided a fringe benefit to an employee or associate without even realising the consequences. Whether or not the business needs to pay Fringe Benefit Tax (commonly known as FBT) will depend on cost of the benefit and how the benefits have been treated in the accounts and tax returns of the business and may also have consequences for the individuals tax return. Fringe Benefits can be a very complicated area of taxation that many business owners are unaware of. Accounting Revolution provides advise that relates to your business and your circumstances when it comes to FBT. The ATO link below may help you to understand the general rules and consequences of providing a Fringe Benefit.
What records do I need to keep on employees and contractors and how long do I need to keep them for?
Regardless of other concessions records for employees and contractors need to be kept for five years.
The following link takes you to more specific information on employees, contractors, superannuation and Fringe Benefits requirements and Accounting Revolution can help in advising the details on how, when and what to do giving you peace of mind that your records will pass the muster if the Taxman decides to visit. Accounting Revolution offers advice tailored to your business and circumstances when it comes to what you need to keep and what can be destroyed.
What payments and reporting obligations can arise from engaging workers?
Accounting Revolution will ensure all your obligations are up to date and accurate. The following link provides a concise summary of employer obligations when it comes to the tax compliance. many new clients to Accounting Revolution have one area that is often missed and therefore worth highlighting to all employers – Employees and contractors for whom you pay super for must be provided with written advice (can be an email) advising the date and the amount of superannuation that has been paid to their fund. New rules are also coming in on July 1st , 2014 for business’s employing more than 20 staff. Please contact Accounting Revolution to ensure your business is compliant and systems are in place to keep and maintain accurate records
Please contact Accounting Revolution to discuss in detail any questions you may have