With the start of a new financial year already here, it is now time for businesses to complete annual compliance tasks to close-out 2022/23. Follow our EOFY checklist below to ensure you (and your staff) are well prepared to enter the new financial year:
Single Touch Payroll (STP) Finalisation
At the end of each financial year, employers reporting through Single Touch Payroll (STP) are required to make a finalisation declaration by the 14th of July to ensure that the income statements for employees are finalised.
Quarterly Superannuation Guarantee Payment
Employers are required to lodge and pay all employee super by the 28th of the month following end of quarter. The April to June 2023 quarter is due for lodgement and payment by the 28th of July 2023.
As a part of STP Phase 2, the ATO now can closely track and monitor when employers physically pay their employees super. We have seen a high level of review and audit activity in this area over the past 6 months, so it is critical that superannuation obligations are being met and paid in a timely manner. If your super is paid late or not at all, you will be required to lodge superannuation guarantee forms and incur late lodgement penalties and interest charges.
Super payment due dates for the 2024 financial year can be found here.
Superannuation guarantee increases from 1 July 2023
For any payroll paid after 1 July 2023, the superannuation guarantee rate will increase from 10.5% to 11%. Most common payroll systems like Xero and MYOB should make the changes automatically in the background, however if you are completing manual payroll you will need to ensure that you change this rate as at 1 July 2023 to avoid any unnecessary super guarantee charges.
Super guarantee rates including what wages you are liable for super guarantee for can be found here.
It is also good to review the types of gross payments that superannuation guarantee is payable on to ensure that your software is accruing super correctly. Please follow this link for further information.
WorkCover QLD – Declarations
If you have a business in Queensland and employ workers, you must insure them against work-related injuries. WorkCover declarations for the 2024 financial year are due before 31st August 2023 to maintain your cover and allow WorkCover QLD to calculate your updated premium.
More information on renewing your WorkCover can be found here.
Minimum wage increases from 1st July 2023
From the first full payrun after 1st of July 2023, the Fair Work Commission has increased award pay rates by 5.75%, with the minimum wage increasing to $882.80 per week, or $23.23 per hour. As an employer, you will need to ensure that you review your employees current pay rates to ensure that you are in line with Fair Work.
More information can be found on the Fair Work website.
Lodgement of Annual Payroll Tax Returns
Annual returns for Payroll Tax must be lodged and paid by Friday 21st of July 2023. As an employer, you must register for payroll tax within 7 days after the end of the month in which you pay more than $25,000 a week, $108,333 a month or $1.3 million a year in Australian taxable wages or become part of a group that together pays more than these thresholds.
This is a good opportunity for employers to review their payroll for the year to check if you have exceeded any of these thresholds and need to register for payroll tax.
For more information visit.
Taxable Payments Annual Report (TPAR)
Taxable Payments Annual Reports (TPAR) are required to be lodged by any businesses or government entities in the following industries:
- Building and construction services
- Cleaning services
- Road freight and courier services
- Information technology services
- Security, investigation or surveillance services
TPARs report payments you have made during the 2022/23 financial year to contractors and can include subcontractors, consultants and independent contractors, operating as sole traders, companies, partnerships or trusts. A business must lodge it’s TPAR by the 28th of August each year.
More information can be found on the ATO website.
If you have any questions or concerns or are unsure about completion of any of these items, please contact your advisor for more information.