There is a lot happening since our last newsletter, so we thought we would focus on a few items that would be of relevance to our readers. The renewed outbreak of Covid 19, some government incentives and the end of the financial year have all resulted in some changes that you need to know about.
Single Touch Payroll (STP) Extension
Since many businesses have been impacted by Covid 19, the ATO has announced an extension to employers to finalise their employees STP. The due date for finalisation of the STP was to be 14th July 2021, however this has now been pushed out to Saturday 31 July with the aim of easing some of the stress for business owners and employers.
The ATO still recommends to have it finalised by 14th July if possible and to let all employees know when this has happened so they can lodge their income tax returns. If you cannot make a finalisation declaration by the due date, you will need to apply for a deferral. Click the button below:
Employee Superannuation is Now 10%
When you employ workers, you are required to contribute to their retirement in the form of employer superannuation if you pay gross wages of $450 or more in a calendar month. Super guarantee (SG) is the minimum you must pay as an employer to avoid the super guarantee charge. Super guarantee is now 10% of gross wages (more specifically “ordinary times earnings”) from 1/7/21.
It is worth noting that not all payments to employees fall under the definition of “ordinary times earnings” and therefore do not require superannuation to be paid on those payments. For clarification of what items constitute “ordinary times earnings” CLICK HERE. It is worth noting that overtime and expense payments do not require superannuation to be paid on these items.
For most small businesses, SG payments are due by 28th day after the end of the quarter. Failure to do this will result in the superannuation payment being treated as non-deductible in your tax affairs and will result in additional paperwork and expense because of the super guarantee charge.
Support For Businesses From Service NSW
I wanted to make you aware of various support initiatives from Service NSW for individuals and businesses. A summary can be FOUND HERE. If you think that you are eligible, you should be able to find out more information and make application on-line. Click below:
Some of the measures are listed below:
Individuals
Covid 19 Disaster Payment: - A payment for workers who have been unable to earn income due to the Covid 19 Lockdown.
Support with tenancy:- Protection from eviction for residential tenants who have suffered a 25% or more loss of income due to the lockdown.
Small and Medium Businesses
Covid 19 Business Grants:- A one off tax free grant of $7,500 to $15,000 depending on your business revenue decline;
Job Saver:- Tax free payments of 40% of pre-Covid weekly payroll or flat rate of $1,000 per week for non-employing entities;
Payroll Tax Support:- 25% reduction in FY22 payroll tax for eligible businesses;
Support with tenancy:- Landlords can’t evict impacted retail or commercial tenancies without mediation.
There are other support measures, but the ones listed above are the most relevant to our client base.
If you have any questions with the information above, please give us a call.
Ph: 02 6884 5542