Champions Business Growth Advisers, Accounting, Taxation, Parramatta

FAIR WORK ACT – EMPLOYER OBLIGATIONS

The NES sets out 10 minimum workplace entitlements which apply to all employers and employees in the national workplace relations system with only certain entitlements applying to casual employees.

www.fairwork.gov.au.   This website is extremely useful and clearly details employer obligations.

Briefly the 10 NES entitlements are:
 

• Maximum weekly hours of work
• Requests for flexible working arrangements
• Parental leave and related entitlements
• Annual leave
• Personal/carer’s leave and compassionate leave
• Community service leave
• Long service leave
• Public holidays
• Notice of termination and redundancy pay
• Provision of a Fair Work Information Statement

What you need to do –    

• Ensure each new employee is provided with a Fair Work Information Statement. 
  Click here to view this statement 
   
• Ascertain whether a new Modern Award will apply to your employees. If you are uncertain as to the Modern Award that should apply to your employees please call us for assistance on 9635 7700 or you can contact Fair Work Infoline on 13 13 94.
  
  Note: Most modern awards contain transitional provisions which allow wages and penalty rates which are higher or lower than pre-existing conditions to be progressively introduced in 5 annual instalments from 1 July 2010.
  
• Understand the 10 NES entitlements and review and update your employment contracts or enterprise agreements as soon as possible to reflect the NES and Fair Work Act.

It is important that you comply with the new standards as harsh penalties apply in the event of a breach of a term of a Modern Award or the NES.

We are currently in the process of training our staff on the changes to the legislation and also looking at ways we may be able to partner with experts in this area to provide you assistance if you should need it. 

Please contact us if you have any questions.
____________________________________

ATO KEY DATES

21 March 
Due date for lodging and paying February 2010 monthly activity statement

31 March
Income tax returns for companies, super funds, trusts and individuals with a 31 March due date are due for lodgment and payment (except for individuals where payment date is per assessment notice - usually 21/4/2010)

21 April
Due date for lodging and paying March 2010 monthly activity statement

15 May
Income tax returns are due for lodgement for individuals, companies and super funds with a 15 May due date.

21 May
Due date for lodging and paying April 2010 monthly activity statement 

26 May
Quarterly activity statement, quarter 3 (March), 2009–10 – due date for lodging and paying if you are lodging via Champion’s (ELS)

28 May
Fringe benefits tax annual return – due date for lodging and paying

5 June
Final date for payment of Income tax returns for trusts, partnerships and individuals with a 15 May due lodgement date

21 June
Due date for lodging and paying May 2010 monthly activity statement

PAYROLL TAX ALERT

In the past 6 months we have been involved in assisting a number of clients with completing OSR Payroll tax reviews.  These reviews involve providing the OSR with data for the past four financial years in relation to wages, super, FBT and the most complex area of contractors.

Some of the common areas where errors can occur are:

• Not including the correct value for FBT;
• Not including the correct amounts in relation to termination payments;
• Incorrectly including Living Away from Home Allowance (LAFHA);
• Not including allowances;
• Not including payments such as directors superannuation (which often are not included on payroll reports);
• Not including payments to contractors that do not satisfy one of the contractor exemption provisions.
• Not being registered for payroll tax at all. In NSW registration is required when wages exceed $638,000 p.a. calculated daily over a month.
• Not registering and paying payroll tax in other States where wages are paid.

It is quite clear that the OSR is trying to increase revenue from payroll tax and to do so they are increasing their compliance activities and looking for businesses who aren't reporting their payroll tax obligations correctly. 

Unfortunately, apart from having to pay back the underpaid payroll tax, the business may also be liable for penalties and interest charges.

Payroll tax can be a complex area.  If you would like us to review your payroll tax calculations or would like some assistance, please contact our office on 96357700.

Click below for additional information on payroll tax: 

NSW Office of State Revenue - Payroll Tax

______________________________________

FRINGE BENEFITS TAX (FBT)

The Fringe Benefits Tax time of year is fast approaching with the 31 March cut off only a few weeks away.  For all you employers who are registered for FBT, you will be receiving a FBT package from us in the mail soon which requests information and includes motor vehicle declarations (if applicable) which need completing. 

Things to remember:

• For all motor vehicles held by the company, you need to make sure the odometer readings are taken at 31 March;
  
• If you are intending to use the log book method which shows the private percentage use of a vehicle, you need to ensure you hold a valid log book. A valid log book is one which has been completed for a minimum 12 week period and is not more than 5 years old;
  
• If you wish to use the actual method for calculating entertainment, you need to ensure you have kept accurate records including how many people attended each event;
  
• FBT returns are due for lodgement and payment (if applicable) 28 May 2010.  It is very important that you try and send to us all FBT information requested as early as possible to ensure your FBT return is lodged on time.

The ATO are increasing their review and audit activities in all areas which includes FBT.  They are especially focusing on motor vehicles so it is very important valid log books are kept and are current.

______________________________________

GIC FREE PAYMENT ARRANGEMENTS

A reminder that the 12 month GIC (general interest charge) free payment arrangements which were available to businesses with an annual turnover of less than $2 million and an activity statement debt expire 1 July 2010.

If you have one of these arrangements, you need to be aware that any outstanding debt from 1 July 2010 will be charged GIC which is currently at a rate of 10.95%. You may wish to ensure the activity statement debt is paid off by 30 June 2010 to avoid paying interest.

_______________________________________

CHAMPION'S STAFF NEWS

We are very pleased to welcome three new members to the Champion's team -

Christopher Pook commenced in February.  He has moved to Sydney from Bathurst after completing his degree and  will soon commence his CA studies.
Shirley He commenced on 1st March and has five years experience in business services.
Amy Schippers commenced on 15 March as our new Junior Receptionist.

                            ***********************

Baby News - Congratulations to Kym and husband Nishan who are now the proud parents of baby girl, Sarah