With the announcement of the new fiscal year, businesses must now focus on their 2021/22 EOFY tax filing obligations, in addition to the retirement changes and other EOFY procedures that will come into effect from July 1, 2022.
Super Guarantee (SG) rate increased to 10.5% with effect from July 1, 2022
On July 1, 2022, the SG rate increased from 10% to 10.5%. Companies need to ensure that their payroll and accounting systems are up to date to accommodate this growth.
The percentage that the employer must apply is determined based on when the employee is paid, not when the income is received. The rate of 10.5 per cent will be applicable on all wages and salaries paid on or after July 1, 2022, whether partly or wholly in the pay period prior to July 1, 2022.
This means that if the pay period ends before June 30, 2022, but the payment date falls on or after July 1, 2022, the rate of 10.5 per cent applies to those salaries and wages. The date of payment of wages and wages determines the super guaranteed rate payable, regardless of when the work is done.
Elimination of the $450 monthly SG limit effective July 1, 2022
A key change effective July 1, 2022 is the elimination of the monthly minimum wage limit of $450 for employers to qualify for SG contributions.
This elimination of the monthly limit amount means that employers will now have to make extraordinary contributions for all of their employees (including casual and part-time employees), regardless of how much they earn. The only exception is employees under the age of 18 who work less than 30 hours per week.
If an employee is eligible for SG for the first time because of the removal of the $450 eligibility limit, their employer must provide them with a standard election form.
These two retirement changes will have a clause for workers’ compensation and payroll tax where applicable. Additional retirement can also push a business beyond the payroll tax limit for the first time and needs to be monitored and managed.
Year-end Completion via One-Touch Payroll
Employers should terminate the STP information of their employees through their STP-enabled solution by creating a termination statement. It declares to the ATO that the employer has provided all the required information for the financial year through STP report.
Once the employer provides the completion indicator for the employees, the ATO will pre-fill the employee’s income tax return and display the information as ‘tax ready’ in their MyGov account.
The deadline for self-employed employees to file the 2021/22 completion statement is Thursday, July 14, 2022. If you don’t finish by this date, the ATO says you should do so as soon as possible to make sure your employees can arrive. Their information.. to complete your 2022 tax return. Xero bookkeeping
The completion deadline is Friday, September 30, 2022 for private payers and Thursday, July 14, 2022 for self-employed payers, for those with a mix of privately owned and self-employed recipients. Small employers (19 or fewer beneficiaries) who have only immediate beneficiaries will need to complete the termination before the due date of the employee’s income tax return.
Annual Taxable Payment Report (TPAR)
Companies operating in the following industries must file annual TPARs by Monday, August 29, 2022:
Building & Construction Services
cleaning service
Courier services
road freight transport services
Information Technology (IT Services)
Security service, investigation or monitoring.
The TPAR reports to the ATO on the payments made to the contractors for providing the above services to the company.
Contractors include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.
Other EOFY Processes
Make sure your records are ATO compliant. The ATO requires companies to keep records for at least five years. Records can be kept in paper or electronic format.
Ensure that BAS submissions and Super Guarantee (SG) contributions are accurate and up to date.
When your company lags behind in its tax and BAS payments, we correct them. Payment terms must be recorded with the ATO and adhered to. Note that the ATO has new powers allowing it to report outstanding business tax debts of at least $100,000 to credit reporting agencies.
When your company has stock, the inventory should have been completed by June 30, 2022. Any excess or shortage of stock amounts and declines identified in the inventory process must be adjusted in the stock module by June 30, 2022. reflected. In accounts 2021/22. link
When your business has sufficient plant and equipment, the real estate inventory should be complete by June 30, 2022. Any required property record adjustments identified in this list, including description, location, quantity and damage/obsolescence, you must register in the Property module by June 30, 2022 to ensure that it is reflected in the 2021/22 accounts .
Balance Sheet and Profit and Loss Statement Review the loan and ensure that the figures match properly (for example, wage and wage agreements in profit and loss agreements in the payroll module) and that material differences with the previous year can be adequately explained.
Disclaimer
This information is provided for general information purposes only and is not intended as professional advice. Readers should not act on the information contained therein without the proper advice of a qualified professional.
