Employers whose employees make salary sacrificed super contributions (or other "employee influenced" superannuation contributions) are obligated to report these amounts on the 2012 PAYG payment summaries. Whilst these amounts are not included in the taxable income of the individual, they are used to calculate various tax offsets.
As this is a complex area of reporting we suggest that, if you have any doubts on how to complete the summaries, you contact us before issuing them to your employees.
Failure to report these amounts correctly can be a costly exercise to rectify in terms of time and money.
for more information on reportable employer superannuation contributions.
A reminder to employers that, when preparing PAYG summaries, the value of any reportable fringe benefits must be shown on each employee's PAYG summary.
We have previously forwarded a schedule of reportable fringe benefits containing details of these amounts to those clients for whom we have prepared a fringe benefits tax return.
Please note that there is no reportable fringe benefit when the value of the fringe benefit is reimbursed, as opposed to when fringe benefits tax is actually paid.
Please contact us with any queries.
New tax rates apply for the 2013 financial year and you will need to update your MYOB file with the 2013 Payroll Compliance update. Various changes include the increase on the tax free threshold from $6,000 to $18,200, reduction in Low Income Tax Offset from $1,500 to $445, changes to tax rates in the various brackets and removal of the Flood Levy etc
We recommend you go to the following link, click on "Getting the Compliance Update", review your MYOB product information to ensure you access the right compliance pack to download and follow the steps advised.
Please contact MYOB or our office with any queries.
From the first pay period on or after 1 July 2012, minimum wages and many allowances have increased for juniors, trainees, apprentices, employees with a disability and for piece rates as well as adult rates. Even if you currently pay your employees above the minimum wage you should check your employees' new minimum wage entitlements from 1 July. Allowances, casual loadings and penalty rates could also increase, so make sure you check these also.
PayCheck Plus can help you find the minimum wages for most modern awards. It can help you find the modern award, classification, pre-modern award and classification, allowances and penalty rates. To find your new minimum wages in PayCheck Plus you'll need to know:
- your employee's status (whether they're full-time, part-time or casual)
- your employee's age (if they are under 21)
- the modern award that applies and your employees classification, including whether they are doing an apprenticeship or traineeship
- the pre-modern award and classification (what would have applied before 1 January 2010)
- whether your business employed staff before 27 March 2006.
Checklist for 1 July
- Check your new rates
- If your employees are entitled to the increase tell them it's coming and, if they're not, tell them why
- The new wages start to apply from the first pay period on or after 1 July (so if your businesses pay week is Monday to Sunday, then you'll need to pay your employees the new minimum wages from Monday 2 July). Make sure your payroll system and payroll staff are aware of the new rates and are ready.
- Apply changes from the first pay period on or after 1 July
- Make sure your payslips and wages records are accurate
Click here for more details on the 2012 Annual Wage Review.
This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.