Yet another financial year has almost rolled around, and with it comes tax time.
And we cannot stress enough that the End of Financial year is such an important time for small businesses. But keeping up to date can be overwhelming as endless deadlines loom.
As June 30 rolls around, there are a couple of key dates and tasks that may need to be checked off your to-do list. So, we have put together the ultimate guide to EOFY 2022…
But before we get into that, a little PSA for you all – remember to connect with your bookkeeper or accountant well before June 30. This will ensure all reporting requirements and deadlines are in order before EOFY.
Ok, let’s do this!
There are a couple of changes to superannuation from July 1. For tax deduction purposes, ensure you pay all superannuation contributions before June 21.
- The rate is changing from 10% to 10.5%.
- The $450 superannuation threshold is being removed. Employees will be eligible to be paid super regardless of how much employees earn.
- Employees under 18 years who work 30+ hours per week will be eligible for super, regardless of what they earn.
Single Touch Payroll
We have now hit the mandatory start date for Phase 2 of Single Touch Reporting (STP) – 1 Jan 2022.
What does this mean? This expansion will reduce the reporting burden for employers who need to report to multiple government agencies about their employees. Which means the right payment is received at the right time.
So, what are the benefits of Phase 2 for employees? Data will be readily available come tax time because it has already been reported to the ATO. Not only this information is shared with the ATO, but it is also shared with Services Australia.
For most employers, STP reporting has already been implemented. However, check your software is Phase 2 enabled.
Check your FairWork award to ensure employees are paid the correct rate. To find an award, use the FairWork pay calculator here.
If you trade stock, an end of year stocktake needs to be completed. A stocktake is imperative to calculating the value of trading stock for business and tax purposes. Make sure you finalise stocktake by June 30.
Need support or advice during tax time? Contact IM Business Solutions in Perth today.