New laws and oversight measures introduced in 2020 should make payroll compliance a key focus for Australian businesses this year. Here’s an expert guide to help get you started.
Last year tipped the way we worked on its head. New, ever-evolving changes to the tax and payroll landscape mean it’s critical for your business to stay informed about its compliance obligations.
In our recent white paper, we look into some of the most pertinent payroll changes and obligations for HR professionals to be across in 2021.
JobKeeper
The ATO has made it clear it will “conduct compliance and audit activities to ensure the JobKeeper Payment is passed on to employees” – specifically by tracking payments through Single Touch Payroll. With the second tier of the JobKeeper scheme extended to March 2021, compliance with the scheme remains essential for employers.
It’s therefore crucial for every business to double check its eligibility for JobKeeper,
as well as for its employees. It’s also critical for businesses to maintain documentation substantiating information they provided to the ATO in their JobKeeper applications, and to have these documents available in the event of an audit by the ATO.
In this guide, we explore three areas of payroll compliance that every business needs to be aware of and share tips to help you stay on top of the ever-changing compliance obligations.
Annualised wages
Along with JobKeeper, 2020 saw changes made to annualised salaries and personal income tax.
As part of its four-yearly review of modern awards, the Fair Work Commission introduced three new standard ‘annualised wage arrangement’ clauses to 22 modern awards – two of which previously didn’t contain annualised wage clauses. This guide examines the significant new obligations for employers who pay annualised salaries and how to stay on-top of the changes.
Personal income tax changes
In the 2020 Federal Budget, the government made tax relief a central platform to help millions of struggling Australians. The start of stage two of the government’s Personal Income Tax Plan was brought forward to 1 July, 2020. This means it now overlaps with tax offsets for lower and middle income earners. It is critical employers understand their tax requirements to avoid potential legal repercussions from getting it wrong.
To find out more about your payroll obligations, download Sage’s new report: Guide to payroll compliance 2021: advice from the experts on how to manage and maintain compliance.
You will also gain:
– Advice from the experts on how to manage and maintain payroll compliance
– Five important tips businesses will need today and over the next three years
– Revised tax thresholds that are effective this financial year
– Maintaining JobKeeper compliance
– Understanding annualised salary changes
– Keeping up to date with personal income tax changes