• End of Payroll Year Compliance Deadlines
  • Information we require from you
  • A reminder of some of the changes taking place in the 2016/17 payroll year

End of Payroll Year Compliance Deadlines

Our guide to Payroll Year End 2016

With end of year approaching, as an employer there are a number of compliance deadlines that you need to meet.  These include:

  • Issuing annual payment summaries to your staff due no later than 14 July 2016
  • Issuing annual payment summaries to the ATO due no later than 14 August 2016
  • Annual Return to Work SA Reconciliation Return for the 2015/16 year and Annual Return to Work SA Remuneration Return for the 2016/17 year due no later than 31 July 2016
  • Annual Payroll Tax Reconciliation for the 2015/16 year (if registered for Payroll Tax) due no later than 21 July 2016
  • Taxable Payments Annual Report for the 2015/16 (Building & Construction Industry only) due no later than 21 July 2016

There are a number of costly mistakes that employers often make at this time such as overpaying Return to Work SA and Payroll Tax by including wage items that are exempt, overstating an employee’s earnings by not taking into account salary sacrifice arrangements, incorrect reporting of allowances and incorrect reporting of Reportable Employer Super Contributions (RESC).

Hence why it is important to have a trained professional prepare these reconciliations and returns.  At Lucent Financial we have rigorous procedures and controls in place to ensure accuracy of your end of payroll year returns.

Information we require from you

  • You should receive a letter from Return to Work SA and Revenue SA (if registered for Payroll Tax) regarding your Annual Returns.  Can you please forward a copy of these letters to us ASAP.
  • Please advise us of any additional wages or super you will be paying or would like us to pay for you prior to 30 June 2016 (aside from your usual payroll cycle).
  • Please provide an estimate of your total wages & super for the 2016/17 year as this is required for your 2016/17 Return to Work SA Remuneration Return (if you do not provide us with this estimate we will base the estimate on your 2015/16 actual wages & super).

A reminder of some of the changes taking place in the 2016/17 payroll year

From 1 July 2016:

  • The minimum rate that employers must make for super guarantee payments on behalf of their employees remains at 9.5%
  • The Medicare Levy remains 2%
  • The Temporary Budget Repair Levy remains at a rate of 2% on individuals’ taxable income in excess of $180,000 per annum ending on 30 June 2017.
  • The Superannuation Concessional Contributions Cap remains at $30,000 for employee’s under the age of 50 years and $35,000 for employees aged 50 years and above.
  • The Non Concessional Contributions Cap remains at $180,000.
  • Minimum Award Rate increase by 2.4% post 1 July 2016

What you need to do:

  • If Lucent Financial or Essential HR do process your payroll; you do not need to do anything, we will adjust your payroll system accordingly from 1 July 2016.
  • If Lucent Financial or Essential HR do not process your payroll; please confirm if you require us to process your payroll year end and if so please arrange a suitable time or contact us if you require assistance with implementing these changes.

Please contact us as soon as possible if you have any queries with regards to this information