30th June (Sunday)
Last day to have payments received by super funds via electronic payment for the Superannuation paid to be Tax Deductible in the 2019 financial year.
*TIP | different super clearing houses and super funds take varying times for payments to be received. Please be aware of processing times of associated funds and clearing houses. Contact your accountant at Brentnalls SA for any needed assistance.
1st July (Sunday)
Employers with 19 or less employees need to be on single touch payroll (STP) compliant from 1 July 2019.
15th July (Monday)
PAYG Payment Summaries must be issued to employees.
22nd July (Monday)
Payroll Tax remittance is due for June and Reconciliation for the 2019 year.
Revenue SA requires all Payroll Tax Annual Reconciliations to be completed via the internet. Use your login and password at Revenue SA's website (RevNet) to complete your return.
If you have forgotten your password, it can be reset at the above address also.
29th July (Monday)
Last date to pay required Superannuation Contributions for 2019 to avoid paying Super Guarantee Charge (this charge incurs penalties and amounts paid are not tax deductible). If using a super clearing house, we recommend that payment is made earlier.
14th August (Wednesday)
Payment Summaries must be sent to the Tax Office or lodged online using an ATO portal service.
28th August (Wednesday)
Taxable payment reporting (TPAR) due to the ATO for businesses who are in the following industries:
Additionally, road freight services, information technology (IT) services, and security, investigation or surveillance service industries will be required to report contractor payments for the 2020 financial year.
15th September (Sunday)
The 2018-19 reconciliation statement is due by the 15th of September for all payers. Payers will now have the ability to choose whether to base the remuneration on estimated figures or actual remuneration for 2020 and future years.
During the month of June you will receive a letter advising your username and password for online access to complete your reconciliation via the website.
Superannuation Guarantee Contribution (SGC)
The SGC rate will remain at 9.5% for the 2020 financial year.
Reporting employees' extra super
You must include all reportable employer super contributions you make for an employee on their payment summary. Reportable employer super contributions are those contributions you make for an employee where these include:
- Salary sacrifice superannuation
- Additional amounts paid to an employee's super fund (for example an annual bonus paid to super).
- An employee negotiating for increased superannuation contributions as part of their salary package (for example under individual employee and package contracts.
Compulsory employer superannuation payments such as superannuation guarantee are not reportable employer superannuation contributions.
The table below compares the requirements for:
Fair Work Australia Annual Wage Review
On 30th May 2019, Fair Work Commission ("FWC") handed down its annual wage review decision for 2018-2019. The new national minimum wage will be $740.80 per week for full time workers or $19.49 per hour, which is effective for the first full pay period starting on or after 1st July 2019.
The 3.0% increase will apply to workers who have their pay set by the national minimum wage or modern award. The national minimum wage applies to employees who aren't covered by an award or agreement.
Employers and employees covered by a registered agreement, should check to see if the increase affects them.
The current casual loadings in the modern awards and for award/agreement free employees will remain at 25%.
There will be further changes to certain penalty rates in some hospitality and retail awards from 1st July 2019, which follows a Fair Work Commission decision made in 2017.
From a practical perspective, employers may consider making a sole adjustment that incorporates the wage increase.
Most modern awards absorption of the award's monetary obligations into over award payments. If this is the case, employers may be able to absorb the increase into any over award payments. It is recommended that employers seek advice before deciding to absorb the increase.
The increase may also affect employers covered by enterprise agreements or transitional agreements that are expressly linked to an award or where the minimum rate of pay in the agreement falls below the equivalent minimum rate in the award. Again, it is recommended that employers seek advice about their obligations.
Single Touch Payroll | What is it?
The Government and Australian Tax Office (ATO) introduced a new process to streamline the way employers report payroll information.
Single Touch Payroll (STP) currently provides a reporting framework to deliver payroll and superannuation information to the ATO earlier than that currently applies under the PAYG withholding ordinary provisions. This means an employer paying weekly wages will report gross wages, tax withheld and superannuation contributions to the ATO every week when the employee is paid.
Who does it applies to?
As of 1st July 2019, all small employers with 19 or less employees will need to report. Larger employers are already reporting. Many employers' current payroll software solution should be suitable for the new STP reporting requirements, with a minor update requirement to enable the feature. For employers with 1-4 employees, alternate options will be made available by the ATO to help with the transition to STP reporting obligations. Other options available include initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll, or a full exemption to STP reporting if you have no internet or an unreliable connection.
What do you need to do?
If your business currently does not use payroll software, the ATO will not force you to purchase such software. Low-cost STP solutions such as simple payroll software, mobile phone apps and portals have been developed to help smaller employers deal with changes. Additionally, accounting software providers such as MYOB, Xero and QuickBooks have STP reporting available to use now with suitable options to assist micro businesses. The ATO has a requirement that such solutions cost $10 or less per month.
How can Brentnalls SA help?
If you have any concerns or would like further information, please speak to your Brentnalls SA team member or contact our office to discuss further.
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The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.