The month of July is a particularly busy period for all taxpayers, but none more so than those that have employees.
Being an employer brings with it a number of additional responsibilities to business owners and its a big leap from being a sole trader or partnership to one that employs third parties and people whom aren't owners of the business.
EOFY Finalisation Process
One of the major responsibilities is to finalise your employee's single touch payroll records so that on their myGov site it will indicate that their employment records are finalised as opposed to unfinalised.
Once the finalisation process has been undertaken in your software and reported to the Australian Taxation Office, your employees will be notified that their employment information is finalised and that they can visit their accountant and/or prepare their income tax return for lodgement with confidence that the information is 100% accurate.
The Finalisation process within single touch payroll software differs depending on the type of software that is used by your business. Each software, whether it be MYOB, Xero, QuickBooks or another bespoke program, all have differing means of finalising the EOFY reports and talk to one of the Team at Ezetax, if you need assistance.
Whilst employers technically have until July 31 to finalise their reporting obligations, we would recommend that you attend to it sooner rather than later, as your employees will be keen to get their income tax returns lodged as soon as possible.
Superannuation Deadline
The superannuation guarantee obligations for the quarter ended 30 June 2022 will be due and payable before 28 July and again depending on your manner of payment, whether it be via the super clearing house with the Australian Taxation Office or via your single touch payroll, be sure to get that finalised in order to avoid the superannuation guarantee charge.
In order to claim a tax deduction for the superannuation, it needs to have been paid to the superannuation funds of your employees and for that reason a number of employers try to make the payment before 30 June as part of finalising and preparing for the EOFY in their business.
However, you do have until July 28 to make that payment for the last quarter so please be sure to get the payment done with plenty of time for clearance of the funds and acknowledgement of receipt of funds by the relevant superannuation fund(s) or clearing house.