Pay superannuation contributions by 30 June 2016 to obtain a deduction in the 2016 financial year (the contribution must be received by the fund by 30 June). Otherwise, ensure super is paid by 28 July 2016 to receive a tax deduction in the 2017 financial year. If you use a clearing house to pay superannuation contributions ensure you allow extra time for the contribution to be received by the fund.
SGC super contributions must be paid on a quarterly basis and paid into the super fund by the 28th day after the end of the quarter. If contributions are paid late they are not tax deductible and super guarantee charge and ATO penalties apply.
For the 2017 financial year, the superannuation guarantee percentage will remain at 9.5%. The rate will remain at 9.5% until 30 June 2021 and then increase by 0.5% each year until it reaches 12%.
PAYG Payment Summaries
PAYG payment summaries must be given to employees by 14 July 2016 and lodged with the ATO by 14 August 2016 for most employers.
An extension may apply until the due date of your tax return if you pay wages only to closely held employees and the ATO is notified.
Ensure the following are included:
- Reportable Superannuation Contributions: Generally refer to salary sacrifice contributions and contributions in excess of that required by SGC (9.5%) or industrial awards. The ATO have identified a number of businesses have not been recording these correctly and have been incorrectly including the SGC (9.5%).
- Don't forget to include superannuation for directors which may not be on payroll reports.
- Reportable Fringe Benefits: A fringe benefit is generally defined as a benefit not being salary, wage or other cash remuneration, derived from employment. If the value of certain fringe benefits you provide exceeds $2,000 in the 2016 FBT year, you must record the grossed -up taxable value of those benefits in the relevant employee's 2016 payment summary. If Champion's prepared your FBT return, we would have provided you with details of the reportable fringe benefits with the FBT return.
You are liable for NSW payroll tax where your salaries, superannuation, taxable fringe benefits and deemed employee costs are over $750,000 for the year. Registration is required where monthly amounts are over $61,644 (based on a 30 day month). Different thresholds apply in each State.
- NSW Rate - 5.45% - 2016 financial year.
- Annual reconciliation due to be lodged and paid by 21 July 2016.
- OSR are targeting Contractors as "deemed employees" and Entity Grouping provisions.
When preparing the annual payroll tax reconciliation, don't forget to include:
- Superannuation for directors which may not be on payroll reports.
- Superannuation life policies may be considered to be super contributions and may need to be included.
- Fringe benefit taxable amounts - gross up Type 1 and Type 2 aggregate amounts by 1.9608
Staff Bonuses/Directors Fees
These expenses may be deductible prior to actual payment, provided the employer is committed to paying these amounts. The employer needs to quantify the amounts, inform the staff and retain evidence of this decision prior to 30 June 2016.
Don't forget to deduct PAYG Withholding and in most cases Superannuation Contributions will also need to be paid on these amounts.
Employee Share Schemes (ESS)
The offering of shares, options and other equity rights at a discount to its market value may fall within the employee share scheme (ESS) taxation rules. Under the ATO reporting requirements, employers are required to:
- provide employees with a ESS statement by 14 July 2016; and
- provide the ATO with an ESS annual report by 14 August 2016
The reporting obligation arises in respect of employees who reside or work in Australia or have resided or worked in Australia during any part of the vesting period, regardless of where the company making the ESS awards is based. Penalties can apply for failure to report.
Super Stream Requirements
If you employ less than 20 employees you must comply with the SuperStream requirements by 30 June 2016. Businesses who employ 20 employees or more should have been fully compliant with SuperStream by 30 June 2015. Please contact us if you need more details on the SuperStream requirements.
NSW Payroll Tax Rebate
The NSW Job Action Plan Payroll Tax Rebate scheme is designed to promote employment in NSW and provides a rebate of between $4,000 and $5,000 per new employee position employed and retained since 1 July 2011. The actual calculation can be quite complex, but it is worth investigating your eligibility if your full time equivalent headcount has increased since 1 July 2011. The scheme has been extended to 30 June 2019.
We have had significant experience in lodging claims and have successfully applied for rebates for clients of up to $100,000.
If you would like to discuss this or would like some help with investigating your eligibility or lodging a claim, please give us a call.