Get your small biz EOFY ready - Items not to be missed! ">

Get your small biz EOFY ready - Items not to be missed!

Kate Cameron - Director & Business Advisor Bundaberg

By Kate Cameron

June 15, 2021

Super Guarantee (SG) rising to 10% 

Don’t forget – From 1 July 2021 the required amount of superannuation you provide employees will need to increase from 9.5% to 10%.  

0.5% might seem insignificant, but for some businesses this will definitely make an impact. This increase is not a once-off either and is set to go up in 0.5% increments every year until it reaches 12% on 1 July 2025.  

The ATO has come down much harder in the past couple years on employers not meeting their SG Contributions – Now is the time to ensure you are getting this right!  

What do I need to do?  

For Xero users, there’s no need to stress. Xero automatically applies the correct rates for superannuation. Like tax tables, they store SG rates rates and retrieve the right percentage based on the payment date of your pay runs.  

→ You just need to double-check you have the ‘Calculation Type’ set to ‘Statutory Rate’ in the employees Pay Template. You can find detailed instructions here.  

For other accounting & bookkeeping systems, it’s worth checking out their Knowledge Base/ Help Articles to see whether this is something you will need to manually update and apply before 1 July. 

If you need any help ensuring your payroll systems are up to date for these items, please reach out to your accountant or contact one of our offices to speak to a business advisor who can walk you through. 

Complete your EOFY Payroll & STP Finalisation

You are required to complete & lodge your STP Finalisation Declaration or Payment Summaries by 14 July each year and it's best to ensure your accounts are clean and in order before then. 

Xero have published an array of great resources to help you complete your EOFY Payroll, including this great detailed checklist on running your EOFY Payroll and STP Finalisation – Download it right now by clicking here

What is STP? 

STP stands for ‘Single Touch Payroll’ and it works by sending tax and super info to the ATO each time you run your payroll (as opposed to only reporting once at the end of financial year). By now you should have this all set up and running, with it becoming a mandatory obligation for all employers on 1 July 2019. ATO did allow some concessions to delay this, but most of these end on 1 July 2021 – So if you haven’t already, now is the time to get your ducks in a row. Learn more on the ATO website here and get in touch with us if you need more info.  

Superannuation Payment Dates & Small Business Superannuation Clearing House (SBSCH)  

The ATO has advised employers intending to claim a tax deduction for super payments that they make for employees in the 2020/21 financial year to make payments early, advising to ensure they are ACCEPTED by the SBSCH on or before 23rd June 2021

This allows processing time for the payments to be received by their employees super funds before 30 June 2021.  

Temporary reduction in pension minimum drawdown rates extended 

Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum amounts to be paid in a financial year. 

For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are having a negative effect on the account balance of their superannuation pension or annuity. 

To assist, the Government has extended the 50% reduction for a further year to 30 June 2022. This means that the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities can be reduced by 50%. 

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Kate Cameron - Director & Business Advisor Bundaberg

About Kate

Director & Business Advisor

Kate’s passion is helping businesses to achieve their potential by guiding strategy, developing plans, and setting clear targets. Operating from our Northern Rivers and Bundaberg offices, Kate has a Bachelor of Business and is a Certified Practising Accountant.

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