Updated: Aug 17
Welcome to our June e-news.
Well it's that time of year again and the End of Financial Year is looming.
It's an extremely busy time for us at Roach Morgan-Jones, particularly coming off the back of COVID-19, so I want to thank all our clients for their patience as we work through a backlog of work.
For our primary producers it's wonderful to hear planting has been completed, followed by some nice falls of rain. It's also great to see many of our clients have resumed trading as COVID-19 restrictions ease. While things may not be completely back to normal just yet, there is light at the end of tunnel.
Whether it be drought or COVID-19, I'd like to remind clients that we have developed a dedicated business recovery package to help you through this tricky period. If you've been affected by drought or COVID-19 and you need assistance in moving your business forward, please give us a call.
With the end of financial year just weeks away, it's important for business owners to be prepared. We've compiled some handy tips to make EOFY less stressful for you as a business owners AND us as your accountants.
For those using single touch payroll, the end of the financial year means you will need to make a finalisation declaration. For the 2019-2020 financial year employers with 19 or less employees will have until 31 July 2020 to make their finalisation declaration. If you're unsure of how to do this, please look in the help section of your software.
Now that COVID-19 restrictions have eased I, along with RMJ's senior accountant Andrew Shiels, will be resuming regular trips out to our Narrabri office. The office will be serviced on a fortnightly basis from July 21. If you'd like to make an appointment, please contact the office on (02) 6766 3777.
I'd like to remind clients of the superannuation guarantee amnesty. Any employer wishing to participate in the amnesty must, by law, apply by September 7, 2020. This is relevant for any employer with outstanding superannuation obligations.
And for those that are not yet reporting through Single Touch Payroll - now is the time to get set up. We can help you through the process, get in touch with us on (02) 6766 3777.
Yours in business,
This package is designed to help and support small business through the recovery stage of drought and COVID-19. It's your toolkit of information to help you understand your current position and how you're trading during the recovery phase. It will give you the confidence to understand your numbers and focus on what you do best… Running your business. So what does this package include? For a fixed price of $1,750 we will:
Review monthly operating costs
Budget & cashflow forecast
Business Health Check
Review of Industry Benchmarks
One on one meetings to strategically plan for the coming 12 months.
The end of financial year can be a stressful time for many business owners. But there are many things that you can and should be doing to make this time of year more streamlined. As a general rule, the more effort you put in during the financial year, the less stress you will have at tax time. With the end of financial year looming it is a good time to look at your systems, processes and software to see if anything can be improved. Here are some handy tips to get you started. 1. UNDERSTAND YOUR GOVERNMENT STIMULUS PAYMENTS
Ensure you're getting what you're entitled to
Record correctly for tax purposes, including receipts in your ledger
2. USE TECHNOLOGY TO YOUR ADVANTAGE
Review your software set up to ensure your are using bank feeds, payroll and super clearing house effectively - there are massive time savings once this is setup correctly
Review your software subscription to make sure you're getting the best deal
3. CHECK YOUR TRANSACTIONS
A quick review of your payroll and allocation of transactions before the end of financial year ensures your records are ready for the accountant
Lodge your single touch payroll finalisation report
4. JUNE TASKS
Review your debtors/creditors listings
Complete banks reconciliations
Ensure BAS lodgements are up to date
On 9 June 2020, the Federal government announced it will extend the $150,000 instant asset write-off until 31 December 2020. This proposed change is subject to the parliamentary process and is not yet law.
Under instant asset write-off eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.
Instant asset write-off can be used for:
multiple assets as long as the cost of each individual asset is less than the relevant threshold
new and second-hand assets.
It cannot be used for assets that are excluded from the simplified depreciation rules.
Eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
More information here
You may be exempt from giving payment summaries and a payment summary annual report for the amounts you reported through Single Touch Payroll (STP). This information will be made available to your employees online through myGov. Your employees can also request a copy of this information from us.
To be exempt from issuing these payments summaries to your employees, you will need to make a finalisation declaration. This declares you have provided all required information for the financial year through your STP reporting.
These payment summaries include:
PAYG payment summary – individual non-business (INB)
PAYG payment summary – foreign employment income (FEI)
PAYG payment summary – employment termination Payments (ETP).
You will not have to provide payment summaries for the following payments if you reported them voluntarily through STP:
payments under voluntary agreement
payments under a labour hire arrangement
death benefit employment termination payment.
You will need to provide a payment summary for any payments not reported through STP.
End of financial year finalisation declaration
You make a finalisation declaration by providing a finalisation indicator for an employee (and directors, contractors, etc.) as part of your STP reporting.
Once you have provided the finalisation indicator for the employee, we will pre-fill the employee's income tax return and display the information as 'tax ready' in myGov.
You can make a finalisation declaration for an employee any time during the financial year (for example, for employees who have ceased employment), or after the end of the financial year up to 14 July.
For the 2019-20 financial year:
employers with 20 or more employees will have until 14 July 2020
employers with 19 or less employees will have until 31 July 2020
If you need more time, you can apply for an extended due date to make your finalisation declaration.
You may be subject to a penalty if you do not make a finalisation declaration by 14 July each year.
You can find more information here.
Anyone that is receiving the JobKeeper wage subsidy should have reported their current earning for May and project earnings for June. It is important these figures are reported by the due date to ensure your JobKeeper payments continue.
Please give the office a call on (02) 6766 3777 if you need assistance.
If you wish to participate in the Superannuation Guarantee Amnesty, the law requires business owners to apply by September 7, 2020.
The amnesty allows employers to disclose and pay previously unpaid super guarantee charge, including nominal interest, that they owe their employees, for quarters starting from 1 July 1992 to 31 March 2018.
The Australian Taxation Office has stated if a business owner has applied for the amnesty, but is now impacted by COVID-19 a payment plan can be arranged.