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Payroll information for 2019

The new financial year is on our doorstep and we want you to be in good shape looking forward! From 1^st July 2018 there will be some changes to payroll, here are some key changes our staff would advise are likely to affect you.

• Tax rates are changing. New tax tables are now available at gov.au/taxtables
  If you use accounting software, contact your software provider for any software updates.
• When employing new employees you are required to provide to them:
  • A letter of engagement & a Fair Work Information Statement (both can be accessed via https://www.fairwork.gov.au/),
  • A Tax File Number Declaration can be accessed from ato.gov.au
  • Superannuation standard choice form https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/SUPER17983Superannuation_standard_choice_form.pdf
• Superannuation is still 9.5%
• Single touch payroll – If you currently record and report your payroll obligations manually or with software that is not online you will need to upgrade to online accounting software with Single Touch Payroll facilities. For employers with 20 or more employees these changes will take effect from the 1^st July 2018 and for employers with 19 or less these changes will take effect from the 1^st July 2019.
• Contractors paid mainly for their labour are employees for superannuation guarantee purposes. This is the case even if the contractor quotes an Australian Business Number (ABN).

You must make super contributions for these individuals if you pay them:

• under a verbal or written contract that is wholly or principally for their labour – that is, more than half the dollar value of the contract is for their labour
• for their personal labour and skills – which may include physical labour, mental effort or artistic effort – and not to achieve a result
• to perform the contract work personally – that is, they must not delegate.

If you make a contract with someone other than the person who’ll actually provide the labour – for example, with a company, trust or a partnership – you don’t pay that person super.

You can:

1. use the employee/contractor decision tool to work out if a contractor is an employee for super purposes
2. use the superannuation guarantee eligibility decision tool to work out if they’re entitled to super guarantee contributions.

 

• Return to Work SA (Workcover) threshold is $ 12,809.00 for 2019, therefore once your Total Gross Employee payments PLUS Superannuation exceed this figure, you must be registered with RTWSA, you can do this or find out more information via https://www.rtwsa.com
• National Employment Standards provide minimum standards of employment entitlements that employees have. It covers maximum hours worked, leave entitlements, etc. Please refer to https://www.fairwork.gov.au/employee-entitlements/national-employment-standards
• Employee award rates are governed by the Fair Work Ombudsman and are updated regularly. The Fair Work Ombudsman provides information for employers regarding pay slip and record keeping requirements. Employers can call 13 13 94 or access the website at https://www.fairwork.gov.au/
• Fair Work Australia offer free short 20 to 40 minute online training courses on Record Keeping, Pay Slips and various other issues at: https://www.fairwork.gov.au/how-we-will-help/online-training
• Work Health & Safety is an important responsibility of all employers. Information regarding this can be accessed via Safework SA help centre on 1300 365 255 or their website http://www.safework.sa.gov.au/

• Old accounting programs are being phased out, we are finding with many programs if you have an older version it will no longer be compatible with our computer system. If you are thinking about upgrading or changing systems please contact our office for advice and possible discounts on offer.

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As the information is designed to cater for an array of clients, businesses and situations, the information is of a general nature only. If anything is of interest to you please do not hesitate to contact our office for further information.

Thank you and enjoy!

 

 

Tax deductions for the coming financial year

Tax deductions are expenses you have incurred through the financial year for work purposes. Claiming deductions is a great way to decrease your taxable income which is often the reason that individuals receive a tax refund.

In order to effectively claim tax deductions you should be aware of necessary record keeping for claim substantiations as well as what information to provide us with.

Remember, most deductions you are entitled to claim are on expenses that directly relate to earning your income and in order to claim a work-related deduction you must have spent the money yourself and not have been reimbursed. Our team has put together this 2018/2019 Deductions / Evidence table to help you provide us with the necessary and correct information.

A brief list of information that we will request in order to prepare your Income Tax Return is also included below.

 

Please note that all claims are susceptible to caveats and depend upon your industry, any questions regarding your eligibility for claims can be directed to our office on 08 8523 0133 or at enquiries@pointons.com.

 

 

Information required for your Income Tax Return

To help us prepare your Income Tax Return please provide us with details regarding the following (if applicable) :

1. Interest earned on bank accounts including children’s
2. Sickness & Accident insurance
3. Motor vehicle used for work, between sites, training etc
4. Uniforms purchased
5. Union fees
6. Work from home – number of hours per week on average
7. Mobile phone used for work – cost of phone per month and percentage of use for work
8. Attendance of training / conferences
9. Certified Donations
10. Voluntary Superannuation payments

 

Including the details of the following for businesses (if applicable) :

11. Any plant and equipment purchased
12. Any loans & leases
13. Copy of all bank statements as at the 30^th June 2018
14. Accounts receivable and accounts payable balance reports.
15. Copy of payment summary statement lodged with the ATO
16. Closing stock numbers / balance of inventory
17. Any other income or expenses not included in software.

 

2018/2019 Deductions Table

Deductions/Evidence

Travel Cents/Km Expenses

Valid claims will use either;

1. Estimate of kilometers travelled
2. Valid logbook method.

Car Expenses

Valid claims will prove the business use of a car by use of either;

1. Estimate of kilometers travelled
2. Valid logbook method.

Home office Work Related use

Valid claims must retain records including:

1. Receipts of equipment & asset purchases
2. Diary for any expenses you cannot find evidence for (regardless of amount)
3. itemised phone accounts to identify work related calls or similar records such as diary entries
4. Lastly you must provide a diary used to calculate what percentage of use is business related on your equipment, home office and phone over a minimum 12 week period.

Cleaning of Work Clothing

Valid claims must be substantiated if both:

• The amount of your claim is greater than $150 and
• Your total claim for work-related expenses exceeds $300.

Gifts and Donations

A valid tax deduction for a gift must meet four conditions:

1. The gift must be made to a DGR (deductible gift recipient). Check whether your donation was made to an endorsed DGR at ABN Look-up
2. The gift must truly be a gift. A gift is voluntary transfer of money or property where you receive no material benefit or advantage
3. The gift must be money or property, which includes financial assets such as shares
4. The gift must comply with any relevant gift conditions. For some DGRs, the income tax law adds extra conditions affecting types of deductible gifts they can receive.

Self-education expenses

For eligible courses you may claim the following expenses:

• accommodation and meals (if away from home overnight)
• computer consumables
• course fees
• decline in value for depreciating assets (cost exceeds $300)
• purchase of equipment or technical instruments costing $300 or less
• equipment repairs
• fares
• home office running costs
• interest
• internet usage (excluding connection fees)
• parking fees (only for work-related claims)
• phone calls
• postage
• stationery
• student union fees
• student services and amenities fees
• textbooks
• trade, professional, or academic journals
• travel to-and-from place of education (only for work-related claims).

Remember to retain relevant documentation for these expenses in order to substantiate claims.

Tools, equipment and other assets

If you buy tools, equipment or other assets to help earn your income, you can claim a deduction for some or all of the cost.

If the tools are used for both work and private purposes you will need to apportion the amount you claim. If you have a computer that is used for private purposes for half of the time you can only deduct 50% of the cost.

The type of deduction you claim depends on the cost of the asset:

• for items that don’t form part of a set and cost $300 or less, or form part of a set that together cost $300 or less, you can claim an immediate deduction for their cost
• for items that cost more than $300, or that form part of a set that together cost more than $300, you can claim a deduction for their decline in value.

Examples of tools, equipment or assets:

• Calculators
• computers and software
• desks, chairs and lamps
• filing cabinets and bookshelves
• hand tools or power tools
• protective items, such as hard hats, safety glasses, sunscreens and sunglasses
• professional libraries
• safety equipment
• technical instruments.

Sickness & accident income protection insurance

Provide valid tax deductibility letter from fund.

Personal Superannuation Contribution

You might be able to claim a tax deduction for personal contributions you make to your super.

This includes individuals who get their income from:

• salary and wages
• a personal business (ie; self-employed contractors, or freelancers)
• investments (interest, dividends, rent and capital gains)
• government pensions or allowances
• super
• partnership or trust distributions
• foreign income.

If you are unsure of your eligibility please contact us before acting on this information.

A successful claimant will provide their fund with a Notice of intent to claim or vary a deduction for personal super contributions.

Please note;

The contributions that you claim as a deduction will count towards your concessional contributions cap. You should carefully consider whether to claim a deduction for super contributions as there are super impacts that may arise from this, including whether:

• possible excess in contribution caps
• Division 293 tax may apply to you
• You may wish to split your contributions with your spouse
• It may affect your super co-contribution eligibility.

If your cap is exceeded, you will have to pay extra tax and any excess concessional contributions will count towards your non-concessional contributions cap.

Superannuation Contribution

Provide valid confirmation of tax deduction letter from fund.

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As this information is designed to cater for an array of clients, businesses and situations, the information is of a general nature only. If anything is of interest to you please do not hesitate to contact our office for further information.

Thank you and enjoy!