I Forgot Day
I forgot is not something you want to be saying often about compliance deadlines!
02/07/2021
I forgot is not something you want to be saying often about compliance deadlines!
Remember how Group Certificates / Payment Summaries have been phased out and Single Touch Payroll (STP) has taken over?
Its now time to reconcile your payroll accounts and finalise income statements for your employees. You have until 31st July 2021.
It’s the last day of the quarter, and the financial year
what do you need to do today?
For cash reporters – payments made today will count as credits on the June BAS, and as deductions this year,
make the payment tomorrow and its a credit on the next BAS and a deduction next financial year.
* conditions apply (its gotta be a business expense!)
Shortly your staff may ask you for a Group Certificate/Payment Summary. Staff will not be receiving any documentation from you, Group Certificates have been replaced by Income Statements under the STP system. An annual ‘STP Finalisation’ to the ATO by 14th July. Staff will be able to access details in their MyGov account. Personal tax
Reconcile EVERYTHING.
Pay particular attention to payroll.
Do your (paper) bank statements match your accounting file?
Lodge:
STP finalisation for staff wages
BAS
Tax Return (you absolutely will need licenced help for this one)
If you are still reporting under the Simplified Tax System, you may be able to prepare your tax return on a cash basis (sales income received and bills paid, not sales issues and bills received). Paying a bill on 30th or 1st July can make a difference to your situation.
If you report on an accrual basis – a bill dated in June but not yet paid will still be considered an expense in the 20/21 year.
Review your accounts payable for accuracy, are there bills sitting there that you know are paid?
Tidy your accounts receivables to start the new financial year, review all open sales and chase up the slow payers.
You may need to issue credit notes or write off sales that you will not receive payment for.
If you’ve tipped over the payroll tax threshold this year, you’ll need to register and make payments.
Check the rules in each state you operate in, certain contractor payments may be included in wage calculations.
Be aware of entity grouping.
Speak to your accountant about potential division 7A issues & tax consequences of loans to associates
If you cannot repay your business you’ll need to look at a formal loan agreement, your accountant can help you. Don’t get caught by deemed wages.
