The Fringe Benefits Tax year ends on 31st March, are you aware what might trigger this extra tax for your business?
A fringe benefit is like a payment to an employee, but in a different form to salary or wages.
Your tax agent can assist with calculations, lodgement, and what exemptions might apply. They may also assist you to make smarter decisions to avoid future lodgements and liabilities.
How do you show your team that you appreciate them?
If you’re thinking of conveying recognition with a gift – keep the fun business tax (or Fringe Benefits Tax if you want to use the technical term) in mind.
Employee of the month awards and a public pat on the back can also be powerful (and cost effective).
Are your team working their proper hours? Do you know what the proper hours are?
Fairwork says:
Maximum weekly hours form part of the National Employment Standards (NES). The NES apply to all employees covered by the national workplace relations system, regardless of any award, agreement or contract.
– maximum ordinary hours that can be worked in a day, week, fortnight or month
– minimum ordinary hours that can be worked in a day
– times of the day that ordinary hours can be worked this is called the spread of hours (for example, between 7am and 7pm).
The ‘spread of hours’ may catch you out if you allow your team to work flexible hours (after they’ve had dinner) – they still need to fit inside the spread of hours or you could be up for overtime rates!
On 6th December 2023 the ATO released a new Tax Ruling in response to a High Court decision about classifying workers.
We’ve trawled through various ATO pages and summarised it for you with links.
To work out if your worker is an employee or contractor, you need to determine whether your worker is serving in your business or is running their own business. You do this by reviewing the legal rights and obligations in the contract you entered into with your worker.
– Ask for help if you need it!
Fair Work has updated the National Employment Standards (NES).
FairWork says: From 1 January 2024, the National Employment Standards (NES) includes a right to superannuation contributions. This means that unpaid or underpaid superannuation can be enforced under the Fair Work Act by more employees (as well as by an employee organisation or us).
Make sure you provide new employees with the current version of the National Employment Standards as part of your onboarding process.
Ask us for help if you have no idea about an employee onboarding process – we can help keep you compliant!
Fair Work has updated the rules about deductions from employee wages.
New rules apply for employee authorised deductions from pay that are either one-off or recurring and for specific amounts or for amounts that change from time to time.
These are called employee authorised deductions and the employee needs to give their permission in writing. Examples of these deductions include payments to a health fund or union fees.
Need help with payroll? Ask us to give you a hand
Fair Work has updated the rules about fixed term contracts
From 6 December 2023, new rules apply when engaging employees on fixed term contracts.
A fixed term contract terminates at the end of a set period (for example, the contract ends on a set date or after a set period of time or a season).
The new rules include a requirement for employers to give any employees they’re engaging on a new fixed term contract a Fixed Term Contract Information Statement (FTCIS).
Need help with payroll? Ask us to give you a hand
Awkward!
Its probably more awkward if you have to tell suppliers and employees you don’t have the money to pay them.
If you can’t pay your bills, you may be insolvent and that can lead to harsh penalties for the directors.
Ask for help before you are in over your talk hole.
Incorrect classification of workers puts your business at risk of receiving harsh penalties, so let’s make sure you know and understand your obligations.
In June 2023, the ATO updated their guidelines, so now is a good time to review.
You may find that over time a legitimate contractor could become an employee, so you need to monitor and review new and existing workers.
The penalties for misclassification of workers are not pretty.
Did you know
Xero customers who use online invoice payments get paid up to twice as fast compared to those who don’t.
Whoa, twice as fast!
What are you going to do about it??
See your options in the xero app store.
to keep up with the news
Be the first to know about critical dates and important gossip!