Preventing payroll mistakes with these top 5 tips

Transcription

1 Preventing payroll mistakes with these top 5 tips

2 2 Contents TIP 1 Check employee details for accuracy 4 TIP 2 Reporting and reconciling to improve accuracy 5 TIP 3 Keep up to date with payroll tax changes 6 TIP 4 Don t miss the payroll deadlines 7 TIP 5 Choose your payroll software carefully 8 The information provided within this document is of a general nature and is intended to be a guide only, in accordance with our Legal Disclaimer. For specific advice regarding your particular circumstances, please consult your tax agent or the Australian Taxation Office as appropriate.

3 3 Payroll mistakes can be costly to small businesses. These tips help small business owners avoid common mistakes when it comes to paying employees.

4 4 Tip 1. Check employee details for accuracy Ensure the following details for your employees are up to date: + + tax file number + + full name + + start date or termination date of employee + + date of birth + + current address + + pay details such as gross wage, allowances, hourly rate, employment period. Using accounting software like MYOB Essentials, you can save your employee details and tax rates.

5 5 Tip 2. Reporting and reconciling to improve accuracy The reporting requirements on payroll vary from state to state. Generally, payroll tax is payable monthly, and you must complete a monthly payroll tax form and lodge this with the state tax office. However, state payroll tax is not applicable for all businesses. For more information, check with your State Revenue Office. You will be required to complete and submit an Annual Reconciliation Form with the state every year, reporting the annual taxable wages and premiums paid over the year. The Annual Reconciliation Form will help you with determining your tax amount whether you still owe the state, or they owe you a refund if you ve overpaid. If you employ staff in many states, then you will be required to complete many state Annual Reconciliation Forms. You can stay on the right side of the ATO by using accounting software like MYOB Essentials. It can help you reconcile your accounts and provide you with a number of reports to assist you with determining your wage levels. These reports will also help meet your reporting requirements with the ATO.

6 6 Tip 3. Keep up to date with PAYG tax changes Tax rates change every year. From 1 July you need to ensure you update to current tax rates. MYOB Essentials will automatically update these tax changes which must be used before you start processing payroll for the new financial year commencing 1 July.

7 7 Tip 4. Don t miss the payroll deadlines As an employer, you ll need to lodge payroll reports to the ATO. Be sure to check with the ATO when your deadlines are for: + + PAYG withholding Withholds amounts from payments you make to employees and businesses so they can meet their end-of-year tax liabilities. As an employer, you have withholding obligations if you have employees, have other workers such as contractors and you enter voluntary amounts to withhold from payment and/or make payments to businesses that do not quotes their Australian Business Number (ABN). + + Payment summaries The summary of the amounts paid to a worker and how much you withheld during the financial year. + + Super reporting ATO SuperStream is the way businesses must pay employee superannuation guarantee contributions to super funds. SuperStream transmits money and information consistently across the super system between employers, funds, service providers and the ATO. Employers can make all their contributions in a single transaction, even if they re going to multiple super funds.

8 8 Tip 5. Choose your payroll software carefully Take the time to set up your payroll as it will help you run your business smoothly. Great accounting software like MYOB Essentials can take care your payroll. Your time will be freed up so you can focus on other aspects of your business that you love. Your time will be freed up.

9 9 Easy online accounting Tax time made easy Fast and easy tax updates ensure you re always up-to-date. Paying super and staying on top of ATO SuperStream requirements is a breeze. Take care of business MYOB Essentials is easy online accounting software that has everything you need to take care of business, including payroll. Take back your time MYOB Essentials is the fast and easy way to manage your cash flow and ATO compliance requirements. Includes time saving features to help take care of the day-to-day bookwork. Free 30 day trial No screenshot for AE

10 10 Looking for a bookkeeper, consultant or trainer? MYOB Certified Consultants are accredited by MYOB to provide onsite support for MYOB Products including sales, setup, implementation, training, advanced reporting, trouble shooting and bookkeeping. Find an MYOB partner nearest to you. Search by postcode Have any questions? We re here to help and our support team is available by calling or online. Sit back and relax knowing you re in the hands of experts.

11 We re here to help myob.com by MYOB Australia. All rights reserved. No portion of this book may be reproduced mechanically, electronically, or by any other means including photocopying, without written permission from the publisher. MYOB Australia. Level 3, 235 Springvale Road, Glen Waverley, Victoria, GSME