End of Financial Year notes for Employers

End Of Financial Year Notes For Employers

The end of financial year is upon us, which imposes quite a few business responsibilities. Wrapping up the accounts for end of Financial Year can be a messy task, with lots of reports to generate and deadlines to be met. With this in mind, it’s important to not forget about your employees.

Here is a handy checklist to help employers meet the payroll obligations for 30 June.

PAYG payment summaries are to be issued to employees before 14th July and to be lodged with ATO before 14th August. All records must be kept for a minimum period of 7 years to support declarations. ATO forms to lodge are:

• PAYG payment summary statement- (form ID) NAT 3447-02.2014
• PAYG payment summary – individual non-business form- (form ID) NAT 0046-02.2014 (one form required for each individual employee)

Throughout employment, ensure your employees’ details are up to date and correct for accurate information sharing with ATO. Details needed:

• First and Surname (and any name changes)
• Tax File Number (TFN)
• Current Residential Address
• Date of Birth (DOB)

Employers are to report their employee’s gross earnings and tax withheld. Also any FBT and RESC payments.

FBT (Fringe Benefits Tax) – Any amounts in excess of $2000 are to be reported. Fringe benefits include:

• Provision of work vehicle that the employee also uses for private purposes
• Loans provided to employee at zero or low interest rates
• Supplementary income for unrelated employment costs of goods like health insurance
• Recreational or entertainment costs

RESC (any superannuation contribution that does not fall under the compulsory super guarantee). This can include:

• Salary Sacrifice
• Additional amounts (eg bonuses) that are paid directly into employee’s superannuation account
• Other agreements that are over the compulsory superannuation guarantee rate of 9.5%

It’s important that payroll information is accurate and it can be helpful to have a bookkeeper or payroll administrator to assist you with the regular processing. It is a crucial aspect to ensure accurate reports for end of financial year.

Solve Accountants are Gold Coast Business Accountants  and here to help you achieve your goals. If you have any questions or need help please contact us now.

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