EOFY Requirements as a Small Business Employer
You’re watching Catalyst Plus TV; the place to be to make more possible. Today’s topic is end of financial year requirements as a small business employer.
Employee Payment Summaries
You need to make sure that your payment summaries have been given to your employees by July 15. And that your ATO statements have also been submitted. If you are using software such as Xero, you’ll be able to comply with this procedure very easily. This is because Xero has the interface that automatically emails the payment summaries to your employees, which can be filed and lodged directly with the ATO; all from within the package.
For other accounting software, you’ll have to download an MDupe file – which is a little too complicated to explain in a short article, so we’ve included more information about how to do this at the end of this blog.
Employee payment summaries checklist
Before you go ahead and prepare you payment summaries for your employees, it’s best to perform a couple of checks to ensure that all the data you have is correct because this information is going to generate the tax returns of your employees.
These checks are;
- Run an annual Report: This must be for the full financial year, using your payment summary information. Note: Ensure that the wage number in your P&L matches up with the total wages that your payment summaries show has been paid.
- Superannuation Payments: You’ll also want to ensure that any superannuation that has been deducted before tax for your employees has;
- Been paid before 30 June; and
- Been recorded correctly in the payment summary
For more details on the above, click on the link at www.CatalystPlus.com.au
Once you have the information you require reconciled; the total wages, the payment summaries and any deductions you’ve made, the next check is;
- Terminations: Check whether you’ve had any terminations in the year. A termination refers to an employee you’ve had to let go – as a redundancy or with pay without notice. In those instances, you’ll need to understand whether or not it is a Lump Sum D; a tax-free threshold component of an eligible termination payment. For more information and guidance on this, read our article.
Submitting your Employee Payment Summaries
Once you’ve figured out whether you have the correct information and whether the payment summary value is correct, you will want to publish them. This will let you print all of your payment summaries, give them to all of your employees and also to submit it to the ATO.
Submitting the information to the ATO is extremely important because the information you submit will also go directly to your employees’ individual tax returns. Therefore, the quicker you make the submission, the quicker your employees can get their tax returns done also. And we all know we want our employees to be on top of everything.
If you have any questions or queries, or if you are struggling to meet your deadlines you are welcome to get in touch with us and we will be more than happy to help you.
In the meantime, keep creating outstanding business and we’ll see you in next week’s episode of Catalyst Plus TV.