As a small business owner, you wear many hats—from managing day-to-day operations to supporting your team and serving your clients. With so much on your plate, it's easy for critical administrative tasks like managing superannuation to fall through the cracks. But, staying on top of your super obligations is crucial to supporting your employees in saving for their funds to avoid potential penalties.
Here are three essential key tips to help ensure superannuation success for your small business:
1.Understand your obligations as an employer
As a business owner with staff, you are required to contribute a percentage of each eligible employee's ordinary time earnings into their designated superannuation fund. This "superannuation guarantee" is currently set at 10.5% for 2023-24. It's important to calculate this correctly, including any commissions, bonuses, and allowances (but excluding ad hoc overtime pay). Using a superannuation guarantee contributions calculator can help avoid...
As a wellness business owner, preparing for tax time can feel overwhelming, but it doesn’t have to be. With the right strategies and tools, you can navigate the process smoothly and ensure your business remains financially healthy. In this guide, we’ll walk you through the key steps to prepare for tax time, explain the PAYG instalment system, and highlight the importance of accounting software, financial reviews, and maintaining a buffer in your business accounts.
Understanding the PAYG Instalment System
The Pay As You Go (PAYG) instalment system is a method of paying your expected tax liability in instalments throughout the year. If your small business grows and your income increases, you might find yourself moving into the PAYG system. This system helps spread your tax payments over the year, making it easier to manage your cash flow and avoid a large tax bill at the end of the financial year.
How PAYG Works
At Business Wellness Hub, we ask our clients to do Monthly Allocations including sending their bank statements each month to us for reconciling. We could do a whole blog post just on this (and likely will in the future!), BUT the purpose of this Blog is to detail one of our most common questions; “Why do you need a copy of thebank statements when our accounting software hasbank feeds?”.
And the simplest answer is we need toverifythatallbank feeds have arrived. Sometimes a day can be missed, orduplicatesappear and these need to be corrected to not only ensure accurate records at BAS time but to ensure the business decisions that you make are backed by accurate data.
By reconciling the feeds to the bank statement, we can confirm the data is accurate.
At BAS time, havingmissinginformationonyourBASmaymean you are not reporting your GST correctly, and no onewantstohearaboutthisduringanaudit!
At...
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