Another quarter end is here. This is a time to reflect on the previous 3 months, to celebrate the successes, and to evaluate things you could be doing better. It is also a time of compliance which can be time consuming and stressful. You need to make sure everything is reconciled, prepare and lodge your superannuation, prepare and lodge your payroll tax. What if you lodge late? What if you make a mistake? Will the ATO fine me? These are all questions which businesses ask themselves which causes stress to rise and productivity to decline.
Yes it is important to make sure everything is reconciled. You need to make sure you are not paying too much, or too little Superannuation, PAYG withholding, Payroll Tax or Child Support. It can be time consuming making sure that everything reconciles and if you do not reconcile things correctly and only go off reports in your accounting package, you may make a mistake.
Superannuation can be tricky and time consuming and is often the most difficult to get correct. You not only need to ensure that the correct amount of superannuation is being paid, but it is being paid to the correct superannuation fund – it is possible that every employee has a different superannuation fund. If you pay too much superannuation, it can be difficult to recover the over payment from superannuation funds. If you pay too little, you may be fined by the ATO.
PAYG is also important to get correct. You need to make sure that you report and pay the correct figures on your BAS. One of the checks the ATO does at the end of the year is to compare the PAYG you have declared and paid throughout the year with the total of the PAYG on the year end Payment Summaries. If these figures do not match, you can expect a please explain letter from the ATO and in the worst case, it could trigger an audit.
Payroll Tax is equally important to get correct. You need to make sure that if you are over the threshold, you are registered for Payroll Tax and lodge Payroll Tax for every state and territory that you pay payroll. Payroll Tax can be tricky because (1) You may pay payroll in different states and be under that state’s threshold, but still be above the threshold with your total payroll so you may need to register and pay pay payroll tax for every state you pay payroll. (2) You may need to group related companies for the purposes of payroll tax, so even though one company may be under the threshold, if grouping applies, you may be over the threshold and may need to pay Payroll Tax for it. (3) There are additional things you may need to include for the purposes of payroll tax such as Director’s Fees.
Child Support is important to get correct even though in some cases the amounts might be small. When you get a letter from Child Support, it is important that you read and understand it. There may be protected earnings each pay run. There may be different amounts you need to deduct from the wages each pay run. There may be an overall total you need to deduct so you need to make sure you keep a running balance.
We understand that you would rather be growing your business, increasing sales, rather than spending time on compliance. Zed Payroll can help by making payroll and compliance easy so all you need to do is to pay one invoice each pay run. We pay Employees, Superannuation, PAYG Withholding, Payroll Tax, and child support so you can spend time growing your business.