August 2020 Newsletter
- Job Keeper extension – what you need to know
- SME loan scheme extended
- Job Seeker Changes
- 90,000 SMEs to benefit from new JobTrainer program
- 65% of retirees are worried about their retirement income
- End-of-year finalisation through STP
Most Australian retirees are now worried about their retirement income (65%), according to new research from investment management firm Challenger.
A quarter of retirees surveyed in May have cut back on basic grocery costs and 37% are minimising clothing and accessory spending as an immediate response to financial uncertainty caused by COVID-19.
If you have 19 or fewer employees, you have until 31 July 2020 to make the finalisation declaration. Before making your finalisation declaration, make sure your STP information is correct. If you can’t make a finalisation declaration by the due date, you will need to apply for a deferral. You can finalise your data earlier if it’s ready. The sooner you finalise your employees’ information, the sooner they will be able to lodge their tax returns.
Announcements:This month we wish a Happy Birthday to Phoebe, Paul & Hayley and congratulate Cris (19), Joanne (9) & Paul (14) on achieving work anniversaries at Watts Price Accountants.
Workcover Rateable RemunerationAbout this time of year employers will be receiving a Workcover Rateable Remuneration Declaration which they will need to action. The easiest way to do this is using the log in details attached to the premium invoice when it arrives. Anyone that needs assistance should contact Watts Price Accountants or Knights Accounting and we will can lodge the declaration on your behalf.
- If you do not certify your rateable remuneration for the current year, it will be assessed to be a minimum of 20% above the highest previous figure
- Where rateable remuneration is not certified, or is incorrectly certified, penalties may be applied.
If your actual rateable remuneration differs from your estimate you are required to revise your estimate of rateable remuneration if:
- it exceeds, or is likely to exceed the WorkSafe estimate, or
- your own previous estimate, by more than 20%, or
- if at any time (prior to 30 April ) the rateable remuneration you have paid, or
- you are liable to pay, is greater than the last estimate you provided
- Deductible benefits
- How workers and contractors are treated
- Rules around Interstate workers
- Exemptions for some apprentices and trainees
- Allowances for motor vehicle and accommodation
Finalisation of Single Touch Payroll
Important Notice for All Employers
As the 2019 – 2020 financial year draws to a close, employers need to be aware of their obligation to lodge a Finalisation Report by July 14, 2020 (for employers with 20 or more employees). All employers will need to: Use their STP solution to ensure the Finalisation Report is lodged no later than 31 July 2020 (for employers with 19 or fewer employees) and inform their employees that:
- They will not be issued with a payment summary
- They can access their salary information via their myGov account via the ‘Income Statement’
- Let employees know that they should not lodge their tax return until their status reads ‘Tax Ready’ (check myGov or ask your accountant)
NB: Employers that started doing their own STP reporting this year must use their STP solution to provide a Finalistation Report, i.e. no paper forms will be accepted (as in previous years)!
NB: Single Touch Payroll for Closely Held Payees If you only have closely held payees then you are not required to start STP reporting until 1 July 2021. A closely held payee is one who is not at arm’s length. This means they are directly related to the entity from which they receive payments, for example:
- family members of a family business
- directors or shareholders of a company
- beneficiaries of a trust