End of Payroll Year Compliance Deadlines.
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 2017
- Issuing annual payment summaries to the ATO due no later than 14 August 2017
- Annual Return to Work SA Reconciliation Return for the 2016/17 year and Annual Return to Work SA Remuneration Return for the 2017/18 year due no later than 31 July 2017
- Annual Payroll Tax Reconciliation for the 2016/17 year (if registered for Payroll Tax) due no later than 21 July 2017
- Taxable Payments Annual Report for the 2016/17 (Building & Construction Industry only) due no later than 28 August 2017
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 Advisory we have rigorous procedures and controls in place to ensure accuracy of your end of payroll year returns.
Information required to complete payroll year end (if Lucent Advisory manage it for 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 Lucent Advisory 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 2017 (aside from your usual payroll cycle).
- Please provide an estimate of your total wages & super for the 2017/18 year as this is required for your 2017/18 Return to Work SA Remuneration Return (if you do not provide us with this estimate we will base the estimate on your 2016/17 actual wages & super).
A reminder of some of the changes taking place in the 2017/18 payroll year
FROM 1 JULY 2017:
- 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 of 2% on individuals’ taxable income in excess of $180,000 per annum ceases from 1 July 2017.
- The Superannuation Concessional (before tax) Contributions Cap reduces to $25,000 for all employee’s, regardless of age (previously $30,000 if younger than 50 years of age and $35,000 if 50 years or older)
- The Non Concessional (after tax) Contributions Cap reduces from $180,000 to $100,000.
- Minimum Award Rate increase by 3.3% post 1 July 2017
WHAT YOU NEED TO DO:
- If Lucent Advisory do process your payroll; you do not need to do anything, we will adjust your payroll system accordingly from 1 July 2017.
- If Lucent Advisory 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.