Did you know that only a Registered Tax agent can provide payroll services?
A payroll service may include:
- processing payroll on behalf of an employer
- performing payroll-related functions, such as interpreting legislation
- helping employers calculate pay as you go (PAYG) withholding and super guarantee liabilities.
There can only be one registered agent per Australian business number (ABN) at each level (client, account or role level).
Why Outsource Payroll?
Payroll is a noncore function. It is not only time consuming but also required your dedicated time to ensure payroll is processed correctly.
From timesheets to the preparation of pay slips and payment of salaries and superannuation, payroll is a non productive activity. Accrual and recording of annual and sick leave is a headache most employers can do without.
Paying employees on time is vital to your business. Being too reliant on a few individuals puts you at risk. Remove the dependency of individuals and utilise a team of payroll experts.
Payroll is one of those things where you just have to do it well every week. Or fortnightly, or monthly – whatever your pay sequence is. It is something you can take a holiday from
Did you know if Superannuation is paid late you need to lodge a Superannuation Guarantee Surcharge?
If you need funding for your business, we can help you. Click here to find out your funding options.
Did you know certain redundancy payments are tax-free up to a limit based on the number of years you worked for that employer?
Redundancy payments are a type of employment termination payment (ETP).
Did you know genuine redundancy payment is:
- tax-free up to a limit based on your years of service
- concessionally taxed as an employment termination payment (ETP) above your tax-free limit
- taxed at your usual marginal tax rate for any amount above certain caps.
Did you know If you employ staff, started on 1 July 2018 for employers with 20 or more employees and 1 July 2019 for employers with 19 or fewer employees and is a mandatory obligation to use Single Touch Payroll?
Find out more about Single Touch Payroll here.
Did you know how termination payments are taxed?
The tax treatment of the termination payments depends on the type of payment, how your employee was terminated, and their age.
Payments for unused annual and long service leave may be concessionally taxed, depending on:
- how your employee is terminated
- when you accrued the leave (these payments are not part of the ETP).
The ETP will have a tax-free component if part of the payment is for invalidity or work done before 1 July 1983.
The ETP cap amount for the 2020–21 income year is $215,000. This amount is indexed annually.
The whole-of-income cap amount for the 2020–21 income year is $180,000. This amount is not indexed. This cap is reduced by any other taxable income payments you receive in the income year.
The concessional tax rate is 17% if you reach your preservation age and 32% if you haven’t, up to the relevant cap. Amounts above the caps are taxed at 47%