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First published on MYOB Australia 5th June 2014.

 

The end of the financial year (EOFY) can be challenging for new business owners. To help ease the worry, below are lodgement dates which you have to be aware of for your GST and BAS obligations.

 

Date

Document

Description

21 June

Activity statements

Final date for lodgement and payment for May 2014 monthly activity statements

30 June

 

End of financial year

21 July

Activity statements

Final date for lodgement and payment for June 2013 monthly activity statements.

Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.

21 July

Taxable payments annual report

First Taxable Payments Annual Report (TPAR) for businesses in the building and construction industry is due for lodgement.

28 July

Taxable payments annual report

First Taxable Payments Annual Report (TPAR) for businesses in the building and construction industry is due for lodgement. This is a deferred due date (in 2014 only) for businesses that lodge quarterly activity statements.

28 July

Activity statements

Final date for lodgement and payment for Quarter 4 (April-June 2014) activity statements.

28 July

GST instalments

Final date for payment for instalment notices for Quarter 4 (April and June 2014) and, also the final date if varying the instalment amount.

31 July

TFN report

Final date for lodgement of Q4 TFN report. This is for closely held trusts for Tax File Numbers quoted to a trustee by beneficiaries

 

If you fail to lodge your return, statement, notice or other documents on time, a penalty is applied by the ATO. The penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof for which a document is overdue, up to a maximum of five penalty units.

Quick tips 

Review your aged receivables – people who owe you money

  1. Review the full list of clients who owe your business money.
  2. Review your aging debtors and full debtors’ collection policy.
  3. If you find any amount that will not be received for specific reasons, then write off the amount.
  4. If the debt is at least 12 months old, and you believe you will receive the payment, then identify the GST amount which potentially can be claimed back. In order to obtain the tax deduction for a write-off of bad debts, the amount must be actually written off the ledger.
  5. Review the GST amount for accrual GST reporting business.

Review your aged payables – money you owe

  1. Review your list of creditors.
  2. Review the aging of creditors.
  3. If you find any amount that will not be paid for specific reasons, then write off the amount.
  4. Review the GST amount for accrual GST reporting business

Review your cash spending

  1. Ensure that all cash paid transactions and receipts have been entered for the year

Reconcile your bank accounts & credit card accounts

  1. Reconcile your accounts. Ensure that all entries which have not yet been presented have been entered into your accounting software.
  2. Identify any un-presented cheques or un-presented deposits which are very old, investigate why and record notes.
  3. Photocopy or scan copies of the statements for each account at 30th June.

Conduct a stocktake

  1. Conduct a stocktake as close to 30th June as possible by recording items on hand, items damaged or items that need to be written off.
  2. Consider discounting items that are slow to sell to realise the cash.
  3. Record any stock adjustments.
  4. Remove or hide any unwanted stock items.

Review your assets 

  1. Create a list of assets such as plants and equipment. Ensure copies of the receipts are on hand for your accountant so depreciation amounts can be calculated.
  2. Review the list and remove items that no longer exist or are obsolete.
  3. Ensure new items are listed and inform your accountant of them.

Review prior BAS statements lodged before Q4

  1. Check that changes made in the Accounting File did not affect prior BAS statements by reprinting the Summary Cash or Accrual GST reports for each reporting period and compare with the lodged BAS.
  2. If there are discrepancies, investigate and take note of it.
  3. Make an adjustment using a General Journal for the next BAS statement or seek advice from your accountant.

With MYOB AccountRight, compliance updates are delivered directly to your software. You can also meet your obligations as an employer with powerful payroll features, process day to day transactions, manage your stock and also keep track of purchases and payments.

 

Make sure you meet all your tax and compliance obligations. Check out MYOB’s Tax Changes Information section, to help businesses like yours stay on top of the latest tax changes.

 

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Posted By Elizabeth Haverfield

Super is changing, get onboard!

17/06/2014 1:28:01 PM

First published on MYOB Australia 26th May 2014.

 

Super for the self employed

If you’re a sole trader or a partner in a partnership, you don’t have to make super contributions to a super fund for yourself. However, you may want to consider super as a way of saving for your retirement. Most self-employed people can claim a full deduction for contributions they make to their super until age 75. Keep in mind that contributions you make may be subject to extra tax if they exceed the contributions limit for that year.

 

There are limits on how much you can contribute to super before incurring extra tax:

  • The concessional (before tax) contributions cap for 2013-14 is $25,000. However, if you are 60 years old or over at any time during the 2013-14 financial year, you will be able to contribute more to your super from 1 July 2013, with the concessional cap increasing from $25,000 to $35,000.
  • If you go over the cap from 1 July 2013, the excess contributions will be included in your assessable income and taxed at your marginal tax rate (plus an interest charge) rather than at the top marginal tax rate
  • From 1 July 2014, this will also apply to people who are 50 years old or over at any time during the 2014-15 financial year.

 

Make sure your super fund has your Tax File Number (TFN), otherwise:

  • your super contributions will be taxed an additional 31.5%
  • your fund won’t be able to accept personal contributions from you, which means you may miss out on any super co-contribution you’re eligible for it will be harder to keep track of your super.

 

Super for employers 

You’re an employer for super guarantee purposes if you employ a person under a verbal or written employment contract on a full-time, part-time or casual basis. You may also be considered an employer if you:

  • make payments to a person for labour under a contract, even if the person quotes an ABN
  • are responsible for paying salary or wages
  • have legal control over the worker (such as the power to dismiss them.

 

You’re also considered an employer and have to pay super for your eligible employees if you are a:

  • non-resident employer who has employees working in Australia
  • government organisation, statutory authority or municipal body
  • tax-exempt organisation
  • family company or trust paying salary or wages to family members (including yourself) who work in the business.

 

How much and when to pay?

From 1 July 2014, the rate will increase to 9.50%. The Government has announced the rate will remain at 9.5% until 30 June 2018 and then increase by 0.5 percentage points each year until it reaches 12%.

Ordinary time earnings (OTE) is usually the amount your employee earns for their ordinary hours of work. It includes things like commissions, shift-loadings and allowances, but doesn’t include overtime payments. Super is calculated quarterly – that is, every three months. For each of your employees:

  • multiply their ordinary time earnings for the quarter by 9.50%
  • pay this amount to a complying super fund or retirement savings account by the quarterly cut-off date.

 

The quarterly cut-off dates to pay superannuation contributions to a complying superannuation fund are:

 

Quarter Cut off date for contributions
1 July – 30 September 28 October
1 October – 31 December 28 January
1 January – 31 March 28 April
1 April – 30 June 28 July

 

If you back-pay salary to a former employee you have to pay super on that too. The ATO has a tool which you can use the Superannuation guarantee (SG) contributions calculator to work out how much super you must contribute for your eligible workers.

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Posted By Elizabeth Haverfield

End of Financial Year Tax Resources

05/06/2014 1:04:17 AM

First published on MYOB Australia 2nd June 2014.

 

As a first time employer, I'm certain you have a lot to do this end of financial year. For payroll, I’ve listed the most important deadlines as well as a useful checklist to ensure you stay on the right side of the ATO.

 

Date

Document

Description

14 July

PAYG withholding Payment Summaries

Payers must issue PAYG withholding payment summaries to payees (that is, employees and other workers).

28 July

PAYG instalments

Quarter 4 (April-June 2013) instalment notices (forms R and T) - final date for payment and, if varying the instalment amount, lodgement.

Finalising all your PAYG instalments before you lodge your tax return will ensure you receive the correct amount of credit in your income tax assessment.

28 July

Superannuation

Due date for payment of super guarantee contributions for quarter 4 (1 April - 30 June 2014) - contributions to be made to the fund by this date.

If you do not pay minimum super contributions for quarter 4 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement - quarterly with us by 28 August 2013. The super guarantee charge is not tax deductible.

 

A failure to lodge on time (FTL) penalty is an administrative penalty which may be applied where your clients are required to lodge a return, statement, notice or other document with the ATO by a particular day, and you fail to do so. A FTL penalty may be applied on documents that are lodged late, or on documents that are overdue.

 

There are 20 questions and answers located on the ATO website which can help you understand more.


A Payroll Checklist


Step

Action

Done

1

Process the last paycheques for the year. (The employee’s money must be cleared in their account in order for it to be allocated to this financial year).

 

2

Confirm you have all employees Tax File Numbers.

 

3

Take note of any payroll adjustments or back pays.

 

4

Print Payroll Reports – Month End and Yearly Totals for Wages, Super, PAYG and Leave Entitlements.

 

5

Reconcile your Wages, Super and PAYG.

 

6

Reconcile any other Liability accounts (RESC or Union or Social Club).

 

7

Make a Backup – Eg; name it companyname before pay sum 2014.

 

8

Prepare and print PAYG Payment Summaries (send them electronically if you can or print 2 copies for the employee, 1 copy for your records and 1 copy for the ATO).

 

9

Make a Backup – Eg; name it companyname after pay sum 2014

 

10

Start a New Payroll Year and load the new tax tables for the 2014/15 year

 

 

Preparing your payroll using MYOB Essentials saves you a lot of time. It has all the smarts you need to complete your pay run and more.



 

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Posted By Elizabeth Haverfield

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