June 30 is creeping up and for some this can mean a stressful time with mountains of paperwork and sometimes-unexpected bills. It doesn’t have to be a dreaded time of year if you prepare yourself and get organised… while you can’t ignore your tax time responsibilities, you can get through it with a big breath, a strong cup of coffee and some handy tips:
- Employers MUST give their employees their payment summaries by 14 July. Start preparing early, check your staff details and ask your staff if they give permission for you to email the summaries… it will save you time having to print, pack and post them all.
- EMPDUPE file must be lodged no later than 14th August.
- It’s a good time of year to check wages and awards to see if these will be increasing/changing in the next financial year. See our article on the minimum wage increase.
- Don’t forget, you’ll soon need to confirm your wages information for Workers’ Compensation premiums.
- While you’re reviewing staff wages and preparing their individual payment summaries, it’s a great opportunity to look at Alternative Employee Remuneration arrangements – have you thought about employee share plans or perhaps performance bonuses to engage your team and motivate them in ways that will assist your business to achieve its goals and boost staff satisfaction and performance?
- While you’re at it, look at performance appraisals for key staff and provide a training and development plan for thriving change seekers and those wanting to advance their career or role potential.
- Check the payroll tax rates and taxable wage thresholds in your state – are you going to be liable for this punitive state tax and if so, how much?
- Review the ATO website for any changes that might affect the EOFY process.
- Reconcile EVERYTHING…
- Make sure any employees who have turned 18 and have NOT supplied a tax file number have their details changed to reflect correct tax being deducted.
- Audit any allowance to ensure they are shown in the correct boxes on payment summaries.
- Review withholding variations that you have received from your employees.
- Load any new tax tables that have come into effect.
- Update any thresholds and caps e.g. termination / superannuation
- Budgets – this is your key to keeping your business on track in the next 12 months and allows some good reporting metrics if there are multiple key stakeholders in the business all working across different segments and departments. Start the next financial year with a clear, organised plan.
For our Workforce Management clients, we prepare all your employee payment summaries and relevant employee paperwork for tax time. Talk to your Workplace Partner for any further information you may require.