End of Financial Year notes for Employers

End Of Financial Year Notes For Employers

The end of financial year is nigh, which imposes a number of responsibilities on businesses. Wrapping up accounts for the end of Financial Year can be messy, with many reports to be generated and deadlines to meet. With all of this in mind, it is important not to forget your employees.

We have developed a handy checklist to assist employers in meeting their payroll obligations at the end of the financial year.

PAYG payment summaries are due to be issued to all employees by the 14th July and must be lodged with the ATO by the 14th August. All records must be kept for a period of 7 years to support declarations made. The forms to be lodged with the ATO are:

• PAYG payment summary statement- (form ID) NAT 3447-02.2014
• PAYG payment summary – individual non-business form- (form ID) NAT 0046-02.2014 this form is required for each individual employee

Upon and throughout employment, it is vital to ensure that your employees’ details are correct and up-to-date for accurate information sharing with the ATO. Details needed comprise of the following:

• First and Last name including any name changes
• Tax File Number
• Current Address
• Date of Birth

Employers must report their staff’s gross earnings and any tax withheld. Further to this, any FBT and RESC payments.

FBT is otherwise known as Fringe Benefits Tax. Any amounts exceeding $2000, must be reported in this section. Fringe benefits can be defined as:

• Provision of work car which employee may use for private purposes
• Loans provided to employees at low or no interest
• Supplementary income for costs of goods unrelated to employment such as health insurance
• Entertainment or recreational costs

RESC is any superannuation contribution that does not fall under the compulsory super guarantee. This can include:

• Salary Sacrifice
• Any additional amounts (e.g.- bonus amounts) paid into an employee’s superannuation account
• Any other agreements that exceed the compulsory superannuation guarantee rate of 9.5%

It is important that all payroll is accurate and can be helpful for a trained payroll administrator or bookkeeper to assist with regular processing. This can be a crucial aspect of accurate reporting at the end of financial year.

Solve Accountants are Gold Coast Business Accountants  and here to help you achieve your goals. If you have any questions or need help please contact us now.

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