Thinking about playing Santa and rewarding staff with a bonus? 💰💰💰
Back in 2019 the ATO changed the rules around tax deductibility of wages. If you don’t withhold tax or report to the ATO (STP) the payment becomes non compliant and you cannot claim the payment as an expense!
Don’t forget super is likely to apply and you’ll need to use the schedule 5 tax scale to work out the tax to withhold.
How do you decide how much to pay as a bonus?
Total cost to you? Amount the employee receives?
Ask us to help you with calculations.
More info:
ATO super on bonuses
ATO tax deductibility of non-compliant payments
