What does Single Touch Payroll mean for the Geelong hospitality industry?

Have you heard of STP? No, we’re not talking about sticky toffee pudding, or soggy toilet paper! We are talking about Single Touch Payroll!

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STP is an Australian Taxation Office initiative requiring medium (20+ employees) to report salaries and wages, PAYG information and superannuation every time pay runs are completed.

As of July 1, 2018, if you are an employer, you will be required to send information directly to the ATO every pay run rather than at the end of the financial year.

It is expected that all sized business’ employers’ will use the Single Touch Payroll system by July 1, 2019.

STP will benefit all businesses especially the hospitality industry. Hospitality can be a tedious industry when it comes to payroll. Taking into consideration classifications, superannuation and rates can be a time-consuming process. STP means that you don’t have to revisit the nitty-gritty details at the end of each financial year. Yay!

If you are like our clients and use XERO for your financials, you can complete pay runs as usual and then simply click the FILE button! It’s that simple.

If you have any queries relating to STP, contact your Geelong accounting firm, Next Level Accountants. Or, if you considering taking a load off your shoulders and out-sourcing your hospitality business’ bookkeeping, Next Level Accountants offers an Always Up To Date™ bookkeeping process that we know you will be impressed with. Give your Geelong bookkeeper a call or drop a line here.  

Hospitality and wages in Geelong

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Geelong has become a hospitality hot spot offering superior coffee and cuisine choices. It’s a bursting industry with satisfied, self-proclaimed ‘foodies’ making a fortune on their cakes, desserts and turmeric lattes.

Owning a café or restaurant brings a nonstop lifestyle consumed by orders, wages, overhead costs and of course, taxes. Next Level Accountants, Geelong, understands the challenges that come with owning a small business whether it be Geelong’s smallest café or most prestigious restaurant. Having ample experience with the hospitality industry, Next Level Accountants receives many queries from clients about wages and awards for casual, part-time and full-time employees.

As an employer, it is your responsibility to pay your employees correctly and stay up to date. This includes employee super guarantee contributions and entitlements.

Are you wondering how you calculate what pay your employees require? This isn’t something that an accountant can tell you. However, services such as Employsure can determine each employee’s classification under the award, which then enables us to ensure your payroll  and staff entitlements are calculated correctly.

There are different classifications that fall under awards, which reflect the correct wages and entitlements. The Fair Work Commission has updated the Hospitality Industry Award 2010 which took effect 1st January, 2018. Such changes include a more flexible rostering threshold for part-time employees and overtime penalty rates for casual employees. To assist you in determining your employees’ entitlements, you can download the Pay Guide from the Fair Work Ombudsman.

As for determining whether your employee is full time, part-time or casual, please find below, a detailed table outlining differences between classifications:

Casual employee

-        No guaranteed work hours
-        Works irregular hours
-        No sick or annual leave entitlements
-        Can end employment without notice (from both employee or employer’s point of view)
-        Higher hourly rate
-        2 days unpaid carer’s/compassionate leave
-        Unpaid community service leave
-        Long-term casual employees can formalise changing to part-time or full-time employment but don’t automatically become permanent employees
-        After 12 months of regular employment, the employee can take parental leave.

Part-time employee

-            Ongoing employment
-            Regular hours
-            Entitled to paid sick and annual leave
-            Must give or receive notice to end employment as per contract agreement
-            Works, on average, less than 38 hours per week
-            Entitled to same benefits as full-time employees but on a pro-rata basis
-            Permanent employee/ on a fixed contract

Full-time employee

-        Ongoing employment
-        Regular hours (38+ hours) 
-        Entitled to paid sick and annual leave
-        Must give or receive notice to end employment as per contract states
-        Permanent employee/on a fixed contract

Next Level Accountants understands the importance of not only classifying your employees correctly, but also paying them correctly. If you have any queries about your Geelong café or restaurant’s employee entitlements, please contact your Geelong accountant.

Have you registered your Geelong business name?

Trading names vs business names

It can be quite confusing when dealing with a trading AND business name. This goes for small businesses themselves, and for accountants working with multiple clients.

The Australian Business Register (ABR) is working with Australian Securities & Investments Commission (ASIC) to retire trading names. 

From November 2018, you will be unable to find trading names under the ABN Lookup. Only registered business names will be listed, so ensure you register your trading name as a business name with ASIC. To continue trading under a specific name, you need to register it as a business name. After a business name is successfully registered it will appear on ASIC's business names register and the ABN Lookup. 

If you are a Geelong small business and would like some assistance with registering your business name, then please call your Geelong accountants, Next Level Accountants.

 

Car claims for Geelong small businesses

Car claims for Geelong small businesses

We all know tax and wheels cost you money… But how much can it cost and how much can you save?

As of 1st July, 2018, there are changes to car threshold amounts that may apply to you and your Geelong small business.

Income tax

When working out the depreciation for the portion of business use of your car, you use the car limit that applies to the year you purchased or leased the car. The current upper car limit for 2018-19 is $57,581.

 Goods and services tax (GST)

When purchasing a car, you can claim one-eleventh of the car limit amount if the car cost more than the car limit (as long as the car is solely for business use).

GST cannot be claimed for any luxury car tax you pay when you purchase a luxury car, regardless of how much you use the car for your business.

 Luxury car tax

As of 1 July 2018, the tax threshold for luxury cars has been increased to $66,331.

The tax threshold for fuel efficient luxury cars like a Toyota Prius, for the 2018-19 financial year remains at $75,526.

A car’s value includes any parts, accessories and/or attachments supplied and/or imported at the same time as the car was purchased.

Asset write-off

If you purchased a car before 30 June and it cost less than $20,000, you can write off the business portion in your 2018 tax return.
Originally, the $20,000 limit was only available to 30th June 2018.  In the latest Federal Budget, there was a proposal to extend the $20,000 instant asset write-off threshold to 30 June 2019. This change is not law yet.

If you are unsure of your GST or tax obligations, Next Level Accountants, located in Geelong, can discuss what may or may not be relevant to your Geelong business.

 

 

 

Geelong small business ATO August deadline calendar

Geelong small business ATO August deadline calendar

Owning a Geelong small business means a frantic lifestyle with many bills and deadlines. Here is Next Level Accountant’s August deadline guide for all things PAYG, superannuation and tax:

14th August 2018

PAYG withholding

PAYG payment summary statement to be lodged for the following entities for the 2017/ 2018 financial year:

  • large businesses that have a total annual PAYG withholding more than $1million.
  • small and medium businesses who haven’t engaged with a tax accountant.

Payment summary types that may need to be reported:

  • PAYG payment summary - foreign employment
  • PAYG payment summary - individual non-business
  • PAYG payment summary - superannuation lump sum
  • PAYG payment summary - business and personal services income
  • PAYG payment summary - superannuation income stream
  • PAYG payment summary - employment termination payment

Geelong small and medium businesses who have engaged a tax accountant to prepare their PAYG reports have a lodge extension to 30 Sep 2018. Please check with your Geelong tax professional which option may apply to you.

Superannuation

Tuesday 14th August is the due date for superannuation funds and retirement savings account (RSA) providers to report Departing Australia superannuation payments (DASPs) made during the 2017/2018 financial year, if the payers are also required to lodge the PAYG payment summary statement as stated above. 
However, the superannuation funds and RSA providers that are not required to lodge the PAYG payment summary statement must report DASPs in a separate annual report to the Australian Tax Office by Wednesday, 31st October 2018.

21st August 2018

Business Activity Statements

Business activity statements for the month of July 2018 are due including GST and PAYG for July 2018.

25th August 2018

Business Activity Statements

Due date to lodge and pay quarterly activity statements for the June 2018 quarter (if lodged electronically by  a tax accountant). 

Tax obligations that may be relevant include:            

  • GST, wine equalisation tax and luxury car tax for the June 2018 quarter.
  • PAYG withholding:
    • for June 2018 (medium businesses).
    • for the June 2018 quarter (small businesses).
    • for the year ended 30 June 2018, from ESS amounts where the employee didn’t quote a TFN or ABN.
    • for the year ended 30 June 2018 by investment bodies, from accrued gains on deferred interest securities where the investor did not quote a TFN.
  • PAYG instalment for the June 2018 quarter for quarterly PAYG instalment payers (4th quarter of the 2017/18 income year).
  • FBT instalment for the June 2018 quarter (1st quarter of the 2019 FBT year).

The due date to lodge and pay is 28 Jul 2018 if lodged on paper

Taxable payments annual report

  • Taxable payments annual report (TPAR) for businesses in the building and construction industry are due for lodgement.

 Please note: These dates may change and these details are only a guide.

For all details, contact the ATO or your Geelong Accountants.

Dates that fall on a weekend or public holiday allow next business day as deadline.