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.

 

Taking your accounting on-line

September 24, 2017

Most of us have spent many years happily using our ‘trusted and true’ desktop accounting systems.  Some businesses are already taking advantage of the benefits on-line accounting can produce. Other businesses are yet to start the journey.

For some, the thought of going on-line brings up all sorts of fears, security, loss of backups, access, internet reliability.  These are all valid issues and need to address on an individual basis.  One size does not fit all.

Once on-line the are just beginning.  Depending on the system you choose you may use all or some of these:

  • Bank feeds – less data entry
  • Single Ledger – you, your bookkeeper and accountant can all access the same data meaning the end of duplications and multiple file version
  • Access – the ability to work from anywhere
  • Integration with other systems (know as add-ons).  Data moves from one system to another without re-keying
  • Storage – less paper records to store for 7 years, easier to find documents
  • Reporting – real time data
  • Payroll – employees can access their own pay slips and prepare on-line leave requests
  • Backups – provided by the on-line vendor

Effective Services can help you to make the change to on-line accounting as easy as possible.  We can:

  • Analyse your business needs and review suitable systems
  • Determine the best implementation plan with you
  • and organise the conversion
  • Train you and your staff
  • Give support during the change over until you and your staff are comfortable and seeing the benefits.

 

Important Dates

September 23, 2017

BAS / IAS

Monthly BAS and IAS – 21st of following month.

Quarterly BAS 1  2018 (Jul-Sep 2017) paper lodgements 28 Oct 2017. Business Portal due 11th Nov 2017. Electronic lodgements –  (if lodging through Effective Services or your tax agent) 25 Nov 2017

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

We suggest using the free superannuation clearing house (if you have less than 20 employees) Small Business Superannuation Clearing House

**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

NSW Payroll Tax   7th day of following month (or next working day)

 

 

 

 

Reviewing your business progress

September 21, 2017

Sue recently attended training for reporting system Calxa. This is largely used by Not for Profit (NFP) organisations.  These types of organisations have traditionally prepared annual budgets, monthly reports for Boards or Management and reviewed their results on a regular basis.

You don’t have to be an NFP to benefit from regularly reviewing your results!  This does not need to be time consuming or costly and can save you money by helping you make more informed, financial decisions.  Talk to us about about the right reporting and review process for your organisation.