Payroll Year End Compliance Deadlines
With payroll year end fast approaching, it is important that employers are aware of the compliance deadlines that need to be met. These include:
- Issuing annual payment summaries to your employees, due no later than 14 July 2018, even if the withheld amount is nil.
- Issuing annual payment summaries to the ATO, due no later than 14 August 2018.
- Annual Return to Work SA Reconciliation Return for the 2017/18 year and Annual Return to Work SA Remuneration Return for the 2018/19 year, due no later than 31 July 2018.
- Annual Payroll Tax Reconciliation for 2017/18 (if registered for Payroll Tax), due no later than 21 July 2018.
- Taxable Payments Annual Report for 2017/18 (Building & Construction Industry only), due no later than 28 August 2018.
There are a number of costly mistakes that employers often make during payroll year end, 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). Therefore, it is imperative to have your reconciliations and returns prepared by trained professionals.
If lucent advisory already manages your annual returns for you, please forward us the letters you will receive from Return to Work SA and Revenue SA. You will also need to advise us of any additional wages or superannuation that you will be paying and would like us to pay for you, with the exception of your usual payroll cycle.
Please also provide us with an estimate of your total wages and super for 2018/2019 as this is required for your 2018/19 Return to Work SA Remuneration Return. If you are unable to provide us with this estimate, we will base the estimate on your 2017/18 actual wages and super.
Some of the changes taking place in the 2018/19 payroll year
FROM 1 JULY 2018:
- The minimum rate that employers must pay for super guarantee contributions on behalf of their employees remains at 9.5%.
- The Medicare Levy remains at 2%, despite a proposed increase which was scrapped in the Federal Budget.
- Single Touch Payroll reporting will become mandatory for businesses with 20 or more employees. See our Single Touch Payroll blog article for further details.
- Job Accelerator Grant Scheme – To take advantage of the scheme and reap the financial benefits, ensure you have registered any additional new staff by the extended closing date of 30 June 2018. See our 2017 State Budget update for more information on the scheme.
- The Minimum Award Rate will increase and the amount by which it increases will be announced around mid-June 2018.
- Tax rebate for low and middle-income earners – From 1 July 2018 to 30 June 2022, low and middle-income earners will receive a tax rebate of up to $530. This is in addition to the existing Low-Income Tax Offset (LITO).
- Personal income tax brackets – From 1 July 2018, the Government will provide a tax cut of up to $135 per year to around 3 million people by increasing the top threshold of the 32.5 per cent tax bracket from $87,000 to $90,000. These changes are incremental and will be implemented progressively over a 7-year timeframe. See our Federal Budget update for more information.
- The Superannuation Concessional (before tax) Contributions Cap remains at $25,000 for all employees, regardless of age. From 1 July 2018, you will only be able to carry forward your unused concessional contributions cap if your total superannuation balance at the end of 30 June of the previous financial year is less than $500,000.
- The Non-Concessional (after tax) Contributions Cap remains at $100,000.
What you need to do
If lucent advisory DO process your payroll, then you do not need to do anything with regards to payroll changes. We will adjust your payroll system accordingly from 1 July 2018.
If lucent advisory DO NOT process your payroll then you will need to ensure all the changes above are actioned in a timely manner to avoid any non-compliance.
Instead of risking non-compliance, why not have your payroll year end managed by qualified professionals? At lucent advisory, we have rigorous procedures and controls in place to ensure accuracy of end of payroll year returns.
Send us an email or give us a call on 08 8471 7007 for more information or to find out how we can assist you with implementing these payroll changes.