Things to watch out for in 2018

January 8, 2018

For Business:

  • Cyber security
  • Accounting systems and add-ons providing more automation
  • Changes to small business tax rates
  • The Small Business instant asset write-off threshold of $20,000 is currently due to stop on 30 June 2018
  • More data moving on-line
  • Baby Boomers selling or closing businesses
  • Interest rates to rise – getting a loan may be harder
  • Less use of cash – more use of ‘Block-chain’ type technologies and digital currencies
  • More remote workers

 

And for employers:

  • Changes to Small Business Superannuation Clearing House
  • New penalty rates in some Awards
  • Changes to 457 Visas
  • More ATO paper forms being moved to mygov
  • Single Touch Payroll

Contact us if you need more information 02 9555 2395

Important Dates

December 2, 2017

BAS / IAS

Monthly BAS and IAS – 21st of following month. (Extension to 21st Feb under certain conditions)

Quarterly BAS 2  2018 (Oct-Dec 2017) paper lodgements 28 Feb 2018. Business Portal due 28th Feb 2018. Electronic lodgements –  (if lodging through Effective Services or your tax agent) 28 Feb 2018

Quarterly Super payments* –by 28th day following end of quarter – due 28th Jan 2018 (for Oct-Dec 2017).  **  

**Note: your required contributions must be received and banked by the funds by 28th day following the end of a quarter.  You may need to remit monthly if:

  • Your employees are making personal contributions
  • The employee’s Award requires it
  • It’s a requirement of the fund for insurance purposes

The ATO’s Small Business Superannuation Clearing House is changing in early 2018.  Please contact us to discuss the right alternative for your business.

NSW Payroll Tax   7th day of following month (or next working day).  Some States may offer extensions, check with your local OSR.

 

 

 

 

Does your accounting system provide you with the information YOU want?

November 2, 2017

Now that business owners are getting more savvy around their finances, the reporting from the basic accounting system may not give them everything they need.  With on-line accounting business owners can access their information in real-time without having the wait until ‘month end.’

The accounting system can provide good information on past results around Debtors, Credits, Wages, Profit and Loss and Balance Sheets.

To get current and, more importantly, future information a specialised reporting system may be what you need.  These can help forecast Cash Flow, Profit, Calculate Break even Point and even track your progress against your goals.

In order to assist clients with reporting and analysis of their business finance data, we have introduced some new tools, available for use right now:

Tax debts for business can affect your credit applications

October 15, 2017

If you have a small business tax debt over $10,000 and it is at least 90 days overdue, the tax man will disclose this information to credit reporting agencies. This is a new measure announced during the federal governments’ mid-year budget update in order to encourage tax debts to be paid off faster. The only way around avoiding your tax debt being reported to credit agencies is to pay it off.

If you have an existing tax debt, you should check out this article.

Is Simpler BAS actually simpler?

October 8, 2017

The tax office has added information about “Simpler BAS” recently. But is it actually simpler? The only thing simpler about the BAS is the fact that there are fewer fields to be filled out by small business owners. It’s still necessary to determine whether or not each transaction has GST.

The ATO is also still insisting that Agents gain signatures from our clients for each and every BAS or IAS lodgement. However, we have recently introduced at Effective Services the ability to apply a digital signature. Once set up, it’s simple to do online and send back documents in a flash. Ask us about this if you are tired of signing and scanning back documents!

Employ staff? Information you need to know

October 4, 2017

If you employ staff, it’s likely you’ve heard about other employers failing Fair Work investigations and about recent changes to Award rates. What’s more is that the ATO has now introduced new changes to how you will need to be conducting your payroll, and they will be keeping closer tabs on how employers pay superannuation to employees. Make sure you’re not caught out by reading on to find out what changes will be affecting you and your business.

The ATO has made changes to how you must perform payroll

Single Touch Payroll has been passed recently into legislation. Wondering what it’s all about? Single Touch Payroll is a direct link between your payroll software and the ATO. Every single time you perform a payment for payroll such as a salary, wage, PAYG Withholding, and Superannuation payment, data is sent directly to the ATO.

From July 1 2018, Single Touch Payroll will become compulsory for employers with 20+ employees. This will be a transition year, where you will need to update your payroll solution with the necessary software to participate. If you have 19 or less employees, you’ll have to begin complying from July 1 2019.

How to get ready for Single Touch Payroll

Avoid the rush during tax-time and get ready now for Single Touch Payroll with a few simple steps:

  1. Enable your payroll system for Single Touch Payroll so it can send the necessary data across to the ATO. Your bookkeeper can help with this if you’re unsure how to check
  2. Update your payroll details
  3. Update your existing employee details
  4. Review the on-boarding process in place for new employees
  5. Update your super guarantee obligations as soon as possible

Unpaid Super Guarantee is catching non-compliant employees

The ATO has also advised they are upping their casework for Superannuation Guarantee by one-third. Therefore, there will be an increase in audits across the board, and penalties will increase by up to 200 percent for any employer not complying with the necessary Super Guarantee requirements.

If you don’t pay your Super Guarantee on time, you can face a penalty and the amount will no longer be eligible for a tax deduction.

Workers Comp insurance in NSW

If you’re an employer in NSW, the State Insurance Regulatory Authority (NSW Workcover) has issued a great new tool you can use to determine if your staff are deemed as workers or contractors. The purpose of this is to determine if you need to provide Workers Compensation Insurance for them or not. You can visit the website here to find out more.

Compliance with Fair Work Australia

Did you know that it’s mandatory to keep records of your employees’ hours for at least 7 years? It’s also mandatory to issue your employees with payslips within one day of pay day. In the interest of Fair Work, an App has been launched aimed at employees. This App allows employees to record their hours, and then compare these logged hours to their supplied pay slips.

Effective Services helps businesses in need of advice on payroll access their Workforce Guardian subscription. Effective Services can send queries through on your behalf and receive a response within three working days. If you could use some professional payroll advice, contact Effective Services today on 0411 218 570 on or visit the website.