eBrief March 2015 - You can now RELY on the ABN Lookup Tool

These dates are from the ATO website and do not take into account possible extensions.

You remain responsible for ensuring that the necessary information is with us in time.

BAS/IAS Monthly Lodgement – January Activity Statement:  21^st February 2015 final date for lodgement and payment.

BAS/IAS Monthly Lodgement – February Activity Statement:  21^st March, 2015 final date for lodgement and payment.

BAS/IAS Monthly Lodgement – March Activity Statement:  21^st April, 2015 final date for lodgement and payment.

 

2nd Quarter of FY 2015: BAS Lodgement – December Quarter 2014(including PAYGI) 28th February, 2015 final date for lodgement & payment

3rd Quarter of FY 2015: BAS Lodgement – March Quarter 2015(including PAYGI) 28th April, 2015 final date for lodgement & payment

When a due date falls on a Saturday, Sunday or Public Holiday, you can lodge or pay on the next business day.

A public holiday is a day that is a public holiday for the whole of any state or territory in Australia

 Due date for super guarantee contributions, for 2nd Quarter of FY 2015, October to December 2014 - contributions to be made to the fund by 28th January, 2015. 
 
Due date for super guarantee contributions, for 3rd Quarter of FY 2015, January to March 2015 - contributions to be made to the fund by 28th April, 2015.

The super guarantee charge is not a tax deduction if not paid by these dates.  

Refer to the ATO for details regarding any SGC charges applicable if not paid by due date.

 

PAYG Withholding
 

Pay as you go (PAYG) withholding is a legal requirement by an employer to withhold amounts from payments to employees. The tax withheld is determined by the ATO tax scales published each year for weekly, fortnightly and monthly payments.

Who Withholds and Pays PAYG Withholding?

• Any business who has employees
• Any business where a contractor asks for Voluntary PAYG withholding
• Any business who has employees
• Any business that has payments to other business where no ABN is quoted
• Any business who has employees
• Any business that pays dividends or royalties to non-residents

Obligations of  PAYG Withholding Employers

• Register to pay as you go (PAYG) withholding
• Withhold amounts from wages and other payments
• Lodge activity statements and make payments of PAYGW
• Provide payment summaries to workers
• Lodge Payment Summary Annual Report

When to Report PAYG Withholding

Small withholders – Withholds $25,000 or less per year, lodge quarterly (though you can choose to lodge monthly)

Medium withholders – Withholds $25,001 to $1 million per year, lodge monthly

Large withholders – Withholds $1 million per year or more, lodge twice a week electronically.

Records to Keep for PAYG Withholding for Five Years

Records to Keep for PAYG Withholding for Five Years

• Wages records, including payment records
• Voluntary agreements
• Employment declarations – Tax Number and withholding declarations
• Copy of payment summaries
• Copy of employment termination payments (ETP)
• Records of Personal Services Income (PSI) you have attributed
• Statements by a supplier where no ABN was quoted, amounts withheld and annual report

Reporting PAYG Withholding
The PAYG tax withheld section on the Business Activity Statement is the area to report PAYGW. There are 4 sections of the PAYG tax withheld: W1, W2, W3 and W4. The following information outlines what payments to include each section.

W1 - Total Salary, Wages and Other Payments
Payments to include in W1 are:

• Salary, wages, allowances, leave loading paid to employees
• Directors fees
• Salary and allowances paid to office holders (including members of parliament, statutory office holds, defence force members and police officers)
• Payments made by a labour hire firm to labour hire workers under a labour hire arrangement
• Employment Termination Payments (ETP)
• Payment for unused annual or long service leave
• Payments to religious practitioners
• Superannuation income stream (Super Funds)
• Superannuation lump sum (e.g. super salary sacrifice amounts - this reduces the gross amount reported)
• Commonwealth education and training payments

Note: include ALL payments subject to withholding even if no tax was withheld because earnings were below the taxable threshold.
Payments NOT to include in W1 are:

• Amounts subject to salary sacrifice arrangements (Not For Profit entity arrangements)
• Super guarantee contributions
• Departing Australia superannuation payments (Super Funds)
• Payments from which you withheld an amount because an ABN was not quoted
• An investment distribution from which you withheld an amount for non-quotation of a tax file number
• Interest, dividends or royalty payments from which you withheld an amount for a payment to a foreign resident
• Payments to foreign residents for entertainment, sports, constructions and casino gaming junket activities

W2 - Amount Withheld from Payments in W1
Amounts of PAYG tax withheld from salary, wages and other payments reported in W1.

W3 - Other Amounts withheld (excluding amounts shown in W2 or W4)

• Interest, dividends or royalty payments you made to a foreign resident
• Interest, dividends, unit trust or other investment distributions you made where TFN is not provided
• Any departing Australia superannuation payments (Only applicable to Super Providers)
• Any payments you made to foreign residents for
  • Entertainment and sport activities
  • Construction and related activities
  • Arranging casino gaming junket activities

W4 - Amounts withheld where no ABN is quoted
Amount withheld from supplier’s payment of 49% of the invoice where ABN not quoted

W5 - Total amounts withheld (W2 + W3 + W4)