Super Lodgements & PAYG Accounting Services
Any business with employees needs to submit Pay as You Go (PAYG) and super lodgements. These reports sound simple enough, but calculating and making these payments can be time-consuming for businesses without robust automated systems in place. Whether you’ve just taken on a new employee or you’re planning to expand, it’s important to understand how employment taxes work and what your obligations are as an employer.
PAYG business accounting is a legal requirement for all businesses. It involves withholding amounts from payments to employees, contractors (if they have agreed to it), and businesses or individuals without an Australian Business Number (ABN).
If you’re a new employer you’ll need to register for PAYG withholding, withhold the correct amounts where needed, and make payments to the ATO when required. You’ll need to report on your PAYG payments in your BAS reports and you’ll also need to provide annual PAYG reports to your employees.
When it comes to super lodgements, Businesses first need to withhold the compulsory amount of superannuation from their employees’ ordinary time earnings (OTE), which is the salary an employee earns for their ordinary work – not including overtime.
Employers are then required to make contributions to their employee’s superannuation funds at least on a quarterly basis. Failure to do so can mean the business is charged penalties by the ATO.
As you can see, PAYG accounting and super lodgements can be complicated, and failure to complete them correctly and on time can result in penalties. Not to mention, it can be a huge headache! There have also been several high-profile cases in recent years where large Australian companies have failed to pay the correct level of superannuation for employees, causing embarrassment and reputational damage. For a business just finding its feet, a situation like this could have disastrous consequences.
Employment taxes can also get tricky when you’re making payments overseas or hiring overseas employees or contractors. It makes sense to outsource these services or (at the very least) find software solutions which can streamline the process.
We can implement software solutions tailored specifically for your business, that incorporate your unique needs and any industry-specific requirements.
We also offer end-to-end payroll services, which incorporate the calculation of PAYG withholding and superannuation. But your responsibilities as a business don’t end there. You still need to calculate your PAYG and pay superannuation for your employees on at least a quarterly basis.
Most of our clients bundle their employee tax services along with our other business services, such as bookkeeping, BAS, reporting, and business advisory services.
Discover more of our business accounting services here.
If you’re struggling to make time for your employment taxes, enlist the help of our professional accountants.
To learn more, book an obligation-free consultation here.