1800 888 479      

 

Are you meeting your tax and super obligations?

22 April, 2016

Are you meeting your tax and super obligations?       

The Australian Taxation Office (ATO) is focusing their attention on employer obligations in the supermarket industry. The ATO has identified that supermarkets are one of several industries at greater risk than other industries of not complying with the following obligations:

  • Superannuation
  • Pay as you go (PAYG) withholding, and
  • Fringe benefits tax (FBT)

With audits due to take place from 1 July 2016, employers in the supermarket industry are encouraged to take advantage of the information and support available online to avoid significant penalties.

Superannuation obligations

The ATO has outlined following key points to help you keep track of your super obligations:

  • Super is money you pay for your workers to provide for their retirement.
  • Generally, if you pay an employee $450 or more before tax in a calendar month, you have to pay super on top of their wages.
  • The Superannuation Guarantee (SG) is currently 9.5% of an employee’s ordinary time earnings.
  • You must pay SG at least four times per year, by the quarterly due dates.
  • You pay into a complying super fund. Most employees are eligible to choose which fund you pay their SG into.
  • If you don’t pay the SG on time, you may have to pay the super guarantee charge.

If you’re paying 9.5% of your eligible employees’ ordinary earnings into a super fund by the quarterly due dates, you’re pretty much on track.

If you have 19 or fewer employees, or an aggregated turnover below $2 million, you can use the free, online Small Business Superannuation Clearing House to make meeting your super obligations even easier.

It’s also a good idea to check whether you need to pay super for contractors (which is sometimes the case) and make sure you keep records of all of your super transactions.

Pay as you go (PAYG) withholding obligations

Under the PAYG withholding rules, you have an obligation to collect tax from payments you make to employees and some businesses so they can meet their end-of-year tax liabilities.
 
To check you are meeting your PAYGW obligations visit ato.gov.au/paygw

 

Fringe benefits tax (FBT) obligations

FBT is a tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of their salary or wages package. If you are a director of a company or trust, benefits you receive may be subject to FBT.
 
To identify if any benefits you provide are fringe benefits and what you need to do, visit ato.gov.au/fbt

Don’t worry

If you miss an SG due date, or think you might, contact the ATO as soon as possible to minimise any penalties you may have to pay. They look favourably at employers who genuinely try to fix mistakes by catching up with late payments and paying a little extra to cover the interest.

If you haven’t met your PAYG or FBT obligations contact us as soon as you can so we know about your situation and can help you solve the problem. Make sure you lodge your activity statements and tax returns on time, even if you can’t pay by the due date. If you have to pay FBT you will need to register with us, report your FBT liability and pay it by the due date.

If you have done all you can the ATO is unlikely to take any further action, but the penalties might be higher if you wait for employees to complain or for the ATO to audit your business.

More information

  • Visit ato.gov.au/EOchecklist
  • For superannuation enquires phone 13 10 20 between 8.00am and 6.00pm, Monday to Friday.
  • For all other business enquiries, including PAYG and FBT phone 13 28 66 between 8.00am and 6.00pm, Monday to Friday.

 

 

Quick facts about your super obligations

  • The minimum super guarantee rate is 9.5 per cent.
  • Your business must pay at least four times a year, with cut-off dates for payments on 28 April, 28 July, 28 October and 28 January.
  • Employer records need to show the super guarantee amounts paid and how they were calculated, the employee offered choice of fund and how any reportable employer contributions were calculated.
  • If your business employs 19 or less people, it will need to be SuperStream compliant by 30 June.
  • The ATO has a range of online tools and calculators designed to help your business get super right available here.

MGA WA Industry Business Breakfast
& National Launch Survey Results

Speech by Jos de Bruin

- See more at: http://www.mga.asn.au/about-us/news/public-media-release-archive/mga-wa-industry-business-breakfast/#sthash.uPmTCtM4.dpuf
Article from the Sydney Morning Herald Website - March 31, 2015 - 4:04PM by Sue Mitchell - See more at: http://www.mga.asn.au/about-us/news/public-media-release-archive/75pc-of-australians-want-more-competition-for-coles-and-woolwort/#sthash.lkBOkVc6.dpuf
Article from the Sydney Morning Herald Website - March 31, 2015 - 4:04PM by Sue Mitchell - See more at: http://www.mga.asn.au/about-us/news/public-media-release-archive/75pc-of-australians-want-more-competition-for-coles-and-woolwort/#sthash.lkBOkVc6.dpuf
 

75pc of Australians want more competition for Coles and Woolworths, Masters Grocer survey shows

- See more at: http://www.mga.asn.au/about-us/news/public-media-release-archive/75pc-of-australians-want-more-competition-for-coles-and-woolwort/#sthash.lkBOkVc6.dpuf
Search