Annual Compliance Reminders To Consider This Month
We hope that you’re reading this with a cold glass of something in your hand because while we applaud your business commitment, we also know you’ve earned a summer break.
For many business owners, this time of year is ideal for some reflection and to get your ducks in a row for the next 12 months. Whilst things are quieter on the client front, run through this list and make sure you’re aware of the key compliance requirements as an owner.
In a nutshell if your payroll is $58,333.33 per month or more, you’re liable for payroll tax. Note that this is the Victorian figure and it does differ slightly state-to-state, all of which you can find here. This threshold amount includes wages, super, bonuses, commissions, leave and leave payments and payments made to certain contractors. This misunderstanding often trips people up and leads to an incorrect calculation.
Payroll is self assessed and lodged (or your accountant will do it for you) so you can see how it’s easily forgotten by some business owners. If you should be registered for payroll tax and have failed to do so, you’ll likely be liable for penalties on top of your tax bill.
If you think this tax might apply to you, feel free to reach out for clarification and next steps. If you’re not hitting that $58k figure yet but may this year, keep payroll tax on your radar.
If you employ or train apprentices or have employees and pay $7,500 or more in remuneration each year, you need to have workcover. It’s an insurance that covers medical bills and other costs associated with workplace injury and it’s not a “nice to have”, it’s a legal must have.
If you don’t have workcover but you should, or if you’re unsure whether you’ve got the appropriate level of cover, you know where to find us.
We have a blog covering all things workcover here.
Single Touch Payroll
If you’re on our mailing list then you would’ve seen many an update about Single Touch Payroll over the last year. STP was rolled out as part of the ATO’s plan to provide easier payroll reporting and it’s up to the business owners to ensure they’ve registered and have updated their systems with each phase.
Xero users (all of our clients) have it easy as the platform prompted and warned everyone ahead of due dates to ensure they remained compliant.
If you’re unsure whether you’re up-to-date with Single Touch Payroll changes, find all the info you’ll need via the ATO here.
Something that slips by many new business owners’ notice is the need to register for GST. If your GST turnover is $75k or more (your gross income minus GST you’ve paid) then you need to be registered for GST. The aim is to have registered *before* you hit that number, so track your forecasting carefully and make sure you’re ahead of it. If you’re a non-for-profit, the GST turnover threshold is $150k.
Your Business Activity Statement calculates how much GST you’ve received versus how much you’ve paid and the ATO then issues you a bill or a refund (a bill most of the time). On top of the GST amount, your BAS also includes your business income tax, employee income tax and a few other more obscure things you can find here.
BAS are included in this list because business owners cannot forget to lodge them on time (unless we do it for you) and then you need to remember to pay them on time. Put the dates in your calendar for the 2024 year and avoid forgetting and then potentially facing penalties.
You all know what it is… but not all of you remember to pay it on time 😉 It’s as important to do this for yourself as it is for your employees. If you’re an employee of your own business, the same rules apply. The easiest way to remain super compliant (pun intended) is to process your super payable at the same time as the pay run. That way, you avoid missing any deadlines and the hefty penalties that can apply when you do so. If this isn’t your existing process, considering making the change this year.
As your business evolves, so should your structure. You might’ve grown, downsized or pivoted into something that looks completely different in the last year – either way, it’s always worth reviewing your structure to make sure it’s still the most tax effective and appropriate option for your specific situation.
If this has got your mind ticking about business planning and strategy for 2024, we also offer business strategy sessions where all of the above is covered – and much more. It’s the best possible way to set your business up for success across the next 12 months.