The Australian Taxation Office (ATO) has identified that businesses in the supermarket, car retailing, bakery and computer system design industries are often lacking or need more help to meet their tax and super obligations.
The ATO is currently running an education campaign for business owners in these industries to help them better understand their responsibilities, particularly focusing on
2) pay as you go (PAYG) withholding
3) fringe benefits tax (FBT).
Despite the importance of super, some employers are still not getting their super obligations right. Super guarantee payments must be made to complying funds or retirement savings accounts by the quarterly due dates, which are 28 days after the end of each quarter. The ATO wants to remind employers that they must comply with the following:
– pay the correct super contributions for their employees and eligible contractors
– comply with SuperStream
– offer employees a choice of super fund
– provide the employee Tax File Number (TFN) to their super funds within 14 days of receiving a TFN declaration form
– meet the quarterly due dates for super payments
– keep up-to-date records of all super payments.
Pay as you go (PAYG) withholding:
Under the PAYG withholding rules, employers have an obligation to collect tax from payments made to employees and some businesses so they can meet their end-of-year tax liabilities. Employers need to lodge their activity statements and tax returns on time to avoid a penalty for failing to lodge on time and show the ATO that you’re aware of your obligations.
Fringe benefits tax:
FBT is a tax that employers pay on certain benefits they provide to their employees and their associates. The benefit may be in addition to, or part of, their salary or wages package. Each FBT year runs from 1 April to 31 March and employers must register, pay and report their liability by lodging an FBT return before the due date to avoid interest and penalties.
From July 2016, the ATO will be undertaking audits of employers who continue not to meet their obligations.