2015 Employer Obligations Survey Results Report

Transcription

1 W: E: 2015 Emplyer Obligatins Survey Results Reprt 2015 Emplyer Obligatins Survey Reprt The Emplyer Obligatins Assciatin f Australia (EOAA) is delighted t share ur 2015 Emplyer Obligatins Survey Reprt with yu. With pssible refrm n the agenda fr varius areas f Emplyer Obligatins and with a current review f Emplyer Obligatins being undertaken by the Inspectr General f Taxatin, ur reprt is timely and relevant t all emplyers. The purpse f this reprt is t summarise and interpret the data cllected frm ur 2015 Emplyer Obligatins Survey. The Big Numbers - Emplying peple in Australia Based n 2014 Gvernment revenue statistics, annual Emplyer Obligatins revenue t the Gvernment is just ver $200 billin. In additin, emplyers remit arund $80 billin each year t emplyee s super funds. Within Australia there are apprximately 850,000 emplyers, with ver 95% f thse businesses cnsidered t be small businesses with a turnver f $2 millin r less. These numbers put in t perspective the huge respnsibility that a large number f emplyers have in managing their wrkfrce, managing multiple Emplyer Obligatins and revenue cllecting fr the Gvernment. Whether an emplyer has 5 emplyees r 5,000 emplyees, whether fr prfit r nt fr prfit, regardless f industry sectr - the burden is significant. Wh cmpleted the survey? The survey was cmpleted by a brad range f businesses and industry sectrs. Imprtantly the survey shwed a gd spread f size, weighted disprprtinately t the larger end f twn. Numbers f emplyees in yur rganisatin in Australia? Mre than 2501, 21.6% Less than 10, 9.1% Between , 14.8% Between , 26.7% Between , 27.8% Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

2 W: E: Key Emplyer Obligatins In the survey we asked respndents t nminate what they viewed as the key Emplyer Obligatins (EO) in their business. Nte that respndents culd chse mre than ne EO and judging by the results belw it is clear that emplyers have cmpeting EO demands. The fllwing chart illustrates the key EO vted by respndents Key Emplyer Obligatins Expatriates Emplyee Share Plans Cntractrs Emplyee Expenses Salary Packaging Payrll Tax Fringe Benefits Tax Superrannuatin Payrll 22.2% 23.9% 34.1% 36.9% 43.2% 63.1% 67.0% 84.7% 92.6% Payrll, Superannuatin, Fringe Benefits Tax and Payrll Tax were identified as the fur key EO. Certainly Payrll and Superannuatin bligatins are mandatry in all businesses. The bligatin fr Fringe Benefits Tax exists nce a single taxable benefit is prvided. The bligatin fr Payrll Tax is subject t an annual wages threshld test that can be as lw as $550,000. Risk f nn-cmpliance Nt nly are emplyers faced with a multitude f bligatins and rules t cmply with, but they are cnstantly under threat by the revenue authrities, n a Federal basis the ATO and the OSR / SRO in each State and Territry. Emplyers that d nt cmply with their EO can be liable t penalties and interest charge. Australian s self-assessment system places the nus n emplyers t ensure they cmply. Fr example, if an emplyee (r ex-emplyee) cmplains t the ATO that their emplyer has nt paid the right amunt f superannuatin, r nt paid it n time, the ATO will cnduct an audit. Often these types f audits begin as a review, in this example, f nly superannuatin guarantee bligatins, but can braden t include ther areas f EO, such as Payrll, Cntractrs and Fringe Benefits Tax. With increased sharing f infrmatin acrss the revenue authrities, in this example, the ATO may then share their cncerns with the State Revenue Offices r ther areas f the ATO. Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

3 W: E: The ATO has arund 2,000 auditrs trained t undertake EO audits, with particular fcus n Payrll, Superannuatin, Fringe Benefits Tax and Cntractrs. Audit & Cmpliance Activities Over half f the respndents said their rganisatin has been audited by the ATO r OSR in the last 2-3 years and the main areas f audit fcus were Payrll, FBT and Superannuatin. AUDIT FOCUS AREAS Payrll, 5.7% Wrk Cver, 10.9% Cntractrs, 9.8% Payrll Tax, 33.9% Super, 18.0% FBT, 21.7% Outsurce r In-huse With the many challenges faced by emplyers, the debate ver Outsurce v In-huse is always strng. Frm ur survey results, Payrll utsurce, either fully utsurced functin r prcessing nly utsurce, is the biggest area f EO utsurce based n 42.8% f respndents answers. Salary packaging at 27.6% and the annual FBT Return at 24.3% were the next mst ppular utsurced EO. EO Outsurced Functin Payrll prcessing utsurced 31.6% Payrll fully utsurced 11.2% Salary Packaging 27.6% Annual Fringe Benefits Tax Return 24.3% Annual Payrll Tax Recnciliatins 5.1% Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

4 W: E: The internal cst f managing Emplyer Obligatins The cmmitment required by emplyers t manage Emplyer Obligatins is significant. Nearly 20% require 11 r mre full-time emplyees t manage day-t-day bligatins and annual / nging reprting bligatins. A further 22% f emplyers require 5 t 10 full time emplyees t manage day-tday and reprting bligatins. Smaller rganisatins require 2 t 4 full time emplyees t manage dayt-day and reprting bligatins. Hw many emplyees are required t manage yur emplyer bligatins? 21+, 9.6% 1, 15.4% 11-20, 10.3% 5-10, 22.4% 2-4, 42.3% Aside frm emplyers paying salary and n-csts, there is the additinal cst f systems, sftware and training. Wh is respnsible fr Emplyer Obligatins? In shrt, everybdy in an rganisatin is respnsible t sme extent r ther fr managing Emplyer Obligatins. Our survey results clearly reflect this shared respnsibility. Wh is respnsible fr Emplyer Obligatins? 79.2% 78.6% 68.2% 35.8% 19.7% 13.9% 1.7% Payrll Human Resurces Finance Tax team Shared Services Partially Fully utsurced utsurced Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

5 W: E: Our survey aimed t gain an understanding f where the respnsibility lies at a functinal level. Accrding t the survey results, Payrll (79.2%), Human Resurces (78.6%) and Finance (68.2%) are the tp three functinal areas that have primary respnsibility fr the emplyer bligatins. It is almst impssible t assign sle respnsibility as the management f Emplyer Obligatins requires a brad range f skills and experience including Accuntants, Payrll, HR and Tax experts. Ultimately, it is a shared respnsibility, but there is a need t have a framewrk in place fr verall respnsibility. Which EO is the mst difficult t manage? Nearly 50% f respndents said that FBT was the mst difficult EO t manage, fllwed by Payrll (29.9 %) and Salary Packaging (18.5 %). Which EO is the mst dificult t manage? 49.7% 29.9% 18.5% 14.6% 12.1% Fringe Benefits Tax Payrll Salary Packaging Superannuatin Payrll Tax External supprt r advice used 74% f respndents rely n external advice n an adhc basis, whilst 18.2% seek advice n a regular basis and 2.6% rely heavily n external advice. T what extent is external advice required? Heavy reliance, Nt at all, Regularly, On an adhc Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

6 W: E: External r internal training ffered The rules surrunding EO are ften cmplex and require dedicatin when trying t stay up t date. Emplyers recgnise the cmplexity and respnsibility by prviding internal training (58.9%) r requiring external training (74%) n a regular r adhc basis. EO training fferred t staff Adhc external training 51.4% Regular external training 22.6% Internal training is nn existent 6.2% Adhc internal training 41.8% Regular internal training 17.1% Cnclusins In additin t cmplying with ther taxatin bligatins, businesses, and nt-fr-prfit rganisatins, have t play a vital rle in cllecting taxes as well as ensuring that emplyee entitlements such as superannuatin payments are made. This survey prvides a high level snapsht f Emplyer Obligatins acrss a range f businesses and industries. We hpe this reprt prvides sme insight t hw emplyers are managing their bligatins and the cnstant demands that are placed n emplyers. If yu have any feedback r queries n ur survey r this reprt, d nt hesitate t cntact me n r paul@emplyerbligatins.cm.au Further belw we prvide sme infrmatin n EOAA and ur upcming training schedule. Best wishes with meeting yur Emplyer Obligatins in 2016! Paul Mather Funder and Managing Directr Emplyer Obligatins Assciatin f Australia Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

7 W: E: Becme a member f the Emplyer Obligatins Assciatin f Australia With the 2016 FBT return seasn just arund the crner, we recmmend jining ur Assciatin s we can help t guide yu thrugh the 2016 FBT Return preparatin prcess. After that we can help yu with yur year end Payrll & Payrll Tax reprting bligatins. And all this fr ur lw intrductry annual membership ffer f $399 including GST. Jin up nline here: Wh are we? We are Australia s nly fully dedicated Emplyer Obligatins Assciatin. Led by Paul Mather, ur team is qualified in Taxatin, Payrll and Accunting with many years f cmbined experience in cnsulting, cmpliance and advisry. Whether yu have 5 emplyee's r 5,000 emplyee's, the number f emplyer bligatins is significant. We understand the interactin between emplyer bligatins, but mre imprtantly, we understand the cmpeting needs f HR, Payrll, Finance and Taxatin teams when managing emplyer bligatins. We ffer industry representatin and leadership thrugh lbbying, thught leadership and cnsultatin. We are astute at dealing with the Australian Taxatin Office and State Revenue Offices. What are Emplyer Obligatins? Emplyer bligatins include the requirement t perate, maintain, ffer and / r meet bligatins in relatin t the fllwing: Payrll Superannuatin Terminatin Payments Emplyee Expenses Fringe Benefits Tax Fleet Management Salary Packaging Payrll Tax Cntractrs Wrkcver Mbility Car Parking Valuatin Lgbk Emplyee Share Schemes Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

8 W: E: What are the benefits f jining the EOAA? Tax & Payrll experts available at yur fingertips EO Assist Query & Answer service (unlimited queries) Eliminate frustratin and time wasted trying t surce the right infrmatin and supprt Build yur teams knwledge and understanding Reduce yur expsure t risk Reduce cmpliance csts Up t 50% discunt available n ur training Members are entitled t discunts n all ur training events Webinar training schedule Seminar training schedule What is the cst f membership? Intrductry ffer - annual membership is $399 including GST Jin here: EO Assist Query & Answer service: (unlimited queries) Central t membership is ur unlimited query service. Members are welcme t submit queries n any aspects f their Emplyer Obligatins. Written respnses will be sent directly t yur . Mst queries will be answered same day. Where the query requires mre in-depth research, the respnse time will be lnger. Where relevant, respnses are referenced t legislatin, case law, rulings, ATOIDs and Practice Statements. Sme recent examples f day t day member queries. Is a travel allwance subject t Superannuatin? Des annual leave accrue n an emplyee s ntice perid? Hw d we treat emplyer cntributins t ur Scial Club? Shuld we pay a referral arrangement via Payrll r prvide the emplyee with a gift vucher? D we have a liability t Payrll Tax n ur emplyee share plan benefits? Hw d we reprt salary sacrificed and emplyer Superannuatin t the Fund and n the emplyee payslip? What expenses can we reimburse tax free when an emplyee relcates temprarily fr wrk? Shuld we withhld tax n payment f a mtr vehicle allwance? Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

9 W: E: Are there tax implicatins f an emplyee cnsuming alchl with dinner when travelling fr business? Des FBT apply when an emplyee business trip includes a private travel cmpnent? We have paid emplyer Superannuatin late, are there any implicatins? Christmas Gifts (what are the FBT, GST and Incme Tax implicatins) Salary Packaging f cars and pre-tax v pst-tax deductins What are the Salary Packaging ptins fr emplyees wh are relcating Terminatin Payments (lking at PAYG withhlding, accruing annual leave n ntice perid and Superannuatin bligatins) Mnthly EO update: A mnthly update and bulletin service cvering current ht tpics, areas fr planning pprtunities, recent relevant cases, ATO/OSR rulings, and ATOIDs. Member cntributins t the Mnthy EO Update are als welcme. Mnthly EO Sptlight Series Each mnth we will fcus n a particular area r areas f Emplyer Obligatins and share with yu technical and peratinal challenges, and slutins. My membership cntacts Up t 6 cntacts can be listed under the membership. This can be updated anytime thrughut yur membership. The membership applicatin nly requires ne staff members cntact details. Once registered, we will seek cntact details fr ther staff. Cntacts may be frm Payrll, Human Resurces, Finance and Taxatin, r any ther part f the rganisatin yu chse. Hw t jin? We lk frward t yu jining the EOAA s that we can help t share the respnsibility fr yur Emplyer Obligatins! If yu have a query abut Membership, please call ur Membership Manager J Yin n r us at member@emplyerbligatins.cm.au Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin

10 W: E: It s time t start thinking abut yur 2016 FBT Return bligatins starting with training Full Day FBT Return Seminars We are hsting five full day 2016 FBT Return preparatin seminars acrss Australia as fllws: A. Wednesday 24 February Sydney Hiltn B. Tuesday 1 March Perth Parmelia Hiltn C. Thursday 3 March Melburne Hiltn Suth Wharf D. Wednesday 9 March Brisbane Hiltn E. Wednesday 16 March Sydney Hiltn Frm yur desk, 2016 FBT Webinar Essentials Training (90 minutes duratin) Thursday 17 March Australian FBT Essentials Update Webinar T register r fr mre infrmatin: Tuesday 22 March New Zealand FBT Essentials Update Webinar T register r fr mre infrmatin: Frm yur desk, Surviving an Emplyer Obligatins Audit (90 minutes duratin) Tuesday 8 March Surviving an Emplyer Obligatins Audit T register r fr mre infrmatin: In-huse training sessin 1. Yu decide the agenda - we will help yu t design the sessin 2. Yu decide the time and place, and length f the sessin 3. Yu chse the audience (Finance, Tax, HR, Payrll, etc) 4. Yu chse the style (presentatin, wrkshp, discussin grup etc) If yu have any queries n ur 2016 training prgram r wuld like t discuss in-huse training ptins, please cntact us: inf@emplyerbligatins.cm.au r Cntractrs Emplyee Expenses Emplyee Share Plan FBT Fleet Lgbk Mbility Payrll Payrll Tax Salary Packaging Superannuatin Wrkcver Liability Limited by a Scheme Apprved under Prfessinal Standards Legislatin