Mark Channell, Director of Jigsaw Advisory, has a wealth of knowledge in the accounting industry and he shares with us the ins and outs of Payroll Tax.

It is that time of the year again, 2013 Payment Summaries are due, and quite often, what is overlooked is the business payroll tax liability. It is your responsibility to register for payroll tax, and if you do not, the consequences are considerable to your business.

What is payroll tax? It is a State Tax, imposed by each of the various States and or Territories. It includes, but not limited too… Wages, Directors Remunerations, Superannuation (both superannuation guarantee and salary sacrifice), Fringe Benefits Tax, allowances, ETP’s and even payments to sub contractors under relevant contracts. Certain exemptions / rebates do apply in relation to motor vehicle allowances and apprentices, and the liability is payable, either monthly or annually.

In each State / Territory, the payroll tax threshold varies, as does the rate of tax. Another couple of areas that need to be look at with care are:

1. Grouping and a group can be constituted under 5 ways:
   1. Related entities
   2. Common employees
   3. Common control
   4. Tracing of interests – controlling interests
   5. Subsuming, where a larger group can be formed out of smaller groups.

The first three are the most common for SME’s however, have you reviewed your structure lately to make sure you have no hidden payroll tax liability

Are you aware of the Rebate Scheme (Jobs Action Plan)?

The Jobs Action Plan is a key priority of the NSW Government and is designed to give NSW businesses the incentive to employ new workers and expand their enterprises in both metropolitan and non-metropolitan areas. Under the plan, businesses that increase the number of full-time equivalent (FTE) employees receive a payroll tax rebate following the employment of each additional employee in a position that is a new job. To be eligible for the rebate scheme, you must be registered as an employer and paying payroll tax under the Payroll Tax Act 2007.

Jigsaw Advisory offers an up front, fixed fee pricing, where you, the client will know what the real cost is, not once the assignment has been completed and the nasty shock is delivered in the mail – The Accountant’s Invoice.

If you would like some more information on Payroll Tax or if you would like advice on Tax Accounting, Planning or Structuring please either email us @ info@jigsawadvisory.com.au or give us a call on 02 9955 2295 and speak to one of our friendly team at Jigsaw Advisory and quote this reference number ACB1308. We will assist you in connecting with your business and therefore to make your accounting and tax experience enjoyable.

www.jigsawadvisory.com.au

By now all of your employees should have their group certificates. If not it’s time to get on to that as they were due on the 14^th of July. Once you have handed the group certificates out, you will have to send an Empdupe file to the ATO. The group certificates can be completed manually using forms provided from the ATO or electronically through you accounting or payroll system if it has the capability of doing so. Make sure that when you do your group certificates, that you include all of your employees, including those who left your business throughout the year.

You have a number of options when it comes to submitting your group certificate’s to the ATO and don’t worry, it’s not due until the 14^th of August 2013. You can submit the paper forms through the post, burn the Empdupe file on to a CD, USB stick or on a floppy disk (if you still have the means to!), or you can lodge the file electronically through the ATO portal.

For more information go to http://www.ato.gov.au/Business/Yearly-reports-and-returns/PAYG-withholding-annual-reports/payments-to-employees/

If you would like some help with your business obligations, Austral Cloud Bookkeeping can provide you with support services. This is a cost effective way to get the help when you need it from a registered bookkeeper and BAS agent. Click Here to find a support package that suits your needs or feel free to contact us on (02)9939 0990 or info@australcloud.com.au

Did you know that as of 1 of July 2013 the Super Guarantee amount changed from 9% to 9.25%? This is something that will generally be updated in your accounting or payroll package but you will need to double check that it actually has been updated. We have experienced a number of software programs that don’t update the amounts but also don’t inform you that it is a manual procedure. This is one of the reasons why we love Xero, it does it all automatically for you for no extra cost such as annual upgrade fee.

We were able to save a client $960 per annum and get them up to date, just by changing their payroll system from an outdated dedicated desktop system to a full online accounting package in Xero. They are still using their previous accounting package but use Xero for payroll. I can only imagine how many other business have been caught by the trap of using multiple software systems and paying those annual upgrade and backup fees when you can get a package that does the whole lot in one!

For more information on the changes to super go to http://www.ato.gov.au/Business/Employers-super/How-much-to-pay-and-when-to-pay/

If you are interested in seeing if we can find a solution that updates your current systems, fits your business model and saves you money, contact us today on (02)9939 0990 or info@australcloud.com.au for an obligation free chat.

That’s where Austral Cloud comes to your service! The team at Austral Cloud is dedicated to providing, implementing and training you and your staff on systems to make your life easier! There is no need to be daunted by the task at hand to update your systems and procedures. This is what we do best!

When it comes to your finances and reporting to the ATO here are some handy questions you can ask yourself to make sure you are meeting your obligations:

• Do you have an accounting system that automatically updates the tax information as soon as an update is released?  
• How do you collect your cash receipts and report on these?  
• Are you reconciling your bank account to make sure that you are claiming all eligible    deductions?   
• Do you have a payroll system that is easy to set up and use, but functional enough to produce substantial reports?  
• How are you keeping track of your super payments and obligations?

No matter whether you are large or small service, you still have these obligations.

If you find yourself questioning if you are meeting the above obligations, there is something you can do about it! Austral Cloud has an experienced team of bookkeepers and CCMS operators who are knowledgeable in the childcare industry. We know what it takes to make your business tick!

If you would like to know more about what we can do to help you, give us a call today!

Want to find out more about our excellent service for the price that best suits your needs? Visit us at www.australcloud.com.au for CCMS requirements or www.australbookkeeping.com.au for Account Keeping requirements.

When planning your personal finances, it doesn’t matter what age you are, there is always something on the horizon that you either need to save for or need to budget for. Maybe it’s an extended overseas trip, a first property or another investment property. Or maybe you are setting yourself up to start a family. Whatever the occasion, what is your approach to budgeting for this new or current venture?

There are a number of free and low cost software programs and apps out there that you can use to watch your spending, but do you know how to use them efficiently? A lot of these apps require you to enter all of the transactions manually and let’s face it, we get excited and do this for about a week! I personally had all of my expenses in a spreadsheet for a number of years until I found the Xero software for personal expenses. This software is amazing! You link your bank accounts, credit cards, loans to it and it pulls in all the transactions for you to allocate. It isn’t a free app though, it is $49 per year but for someone who needs to manage their expenditure, this pays for itself time and time again with it’s automatic bank feeds and memorised transactions! Plus at the end of the year, all of your financial information is ready to hand over to the accountant!

With this handy piece of technology, you can compare your actual expenses against your budget and track how you are going. There are a number of reports that you can generate to see where you can make adjustments to your expenditure and also see where you are saving money!

You may ask, why is this relevant for me? I’m not operating a business. But think about the fact that if you have an investment property or share portfolio, you can control your incomings and outgoings and forward plan for your next business venture, investment or leisure activity!

For those who want a more basic app, a great free one is an ASIC app called Track My Spend. You can find a lot of information and handy calculators from the Money Smart site. Have a look at www.moneysmart.gov.au.

If you would like more information about Xero personal finance software, setting up a budget for your household or setting up your accounts for your business, we would love to help you get on track!

If you feel that it is time to get a financial planner or accountant involved, send through an email and we can recommend some great resources to manage or increase your financial strategy. A great place to start is Delta Financial Group. They have a really informative blog that gets you thinking about the strategies for your financial future, go to www.deltafinancialgroup.com.au.

You can get information on how to set up your payroll systems, award rates, what your rights as an employer and what your employee’s rights are. This is also a great place to get a whole range of templates i.e. Timesheets, Employee Information etc.

The Fair Work Ombudsman also has a newsletter subscription that you can sign up for. This is a great way to keep abreast of any changes in policies as well as being reminded of various rulings. The newsletter is written in a way that is easy to understand and apply which is always a breath of fresh air!

To have a look at this handy tool, go to www.fairwork.gov.au or click here to go to the newsletter.

Payroll can be one of those tasks that is unbearable, especially if you don’t have a user friendly accounting software. If you require help with your payroll systems or just want someone to do it for you, give the friendly team at Austral Cloud a call on (02) 9939 0990 or email info@australcloud.com.au.

Last month, I was asked if Austral Cloud outsources clients’ bookkeeping overseas because we use online accounting software. It’s not something I would ever consider, but due to the benefits of cloud computing, it is now easier to do business this way. Upon investigation, I was shocked about the amount of bookkeeping work that is being sent offshore by bookkeeping practices whether the clients knew or not. I had heard of this happening in other industries but had no idea to what extent it is happening in the financial industries.

So another week or so went by and I was meeting with a new client to set up their accounts. I took one look at their accounts and was mortified. This was my first encounter with the work of an outsourced “bookkeeper”. Unbeknown to my client, her accounts were being sent offshore by an Australian bookkeeping practice. It was a total mess and it took hours to fix what was done. Thankfully we had got on top of it sooner rather than later!

There are practices that are very transparent about the work going overseas and charging less on the bookkeeping fees, but then there are those that are sending the work overseas and not telling the client and pocketing the difference. The problem with both methods is that if a trained professional is not keeping track of essential compliance and reporting i.e. BAS’s and Superannuation, it may be costing you a lot more in the long run.

The upside is, there are some really great bookkeeping practices out there! Just make sure that you do your research and ask the following questions;

1. Are my books being taken care of onsite within Australia?
2. What is the qualification of the person managing my books? Must be a minimum of Cert 4 in accounting.
3. What is your BAS Agent number?  Check the validity at the Tax Practitioners Board
4. What professional body are you a member of? Recognised BAS Agent associations.
5. Do you have professional indemnity insurance? What amount does this cover you for? The minimum cover for a small business is $250k. Professional Indemnity Insurance

If you are not sure if you are meeting Tax and Superannuation obligations, the team at Austral Cloud Bookkeeping are available to help.

Kindest regards,

Chantal Adney