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August 2019 eBrief

Fair Work Priorities for 2019–2020

Fair Work Ombudsman (FWO) Sandra Parker has announced the FWO priorities for 2019–20

Key themes (ICB extract)

a stronger approach to enforcement
strong message of deterrence to would-be lawbreakers

Priorities

  • Fast food, restaurants and cafes
  • Horticulture and the harvest trail
  • supply chain risks (ie where the subcontractor to the contract is underpaying)
  • Franchisors
  • Sham contracting (where they really should be an employee but the contract means less pay)

Areas of concern that are highlighted for clients and bookkeepers

  • FWO can force the provision of payroll records if there is a problem
  • Payroll records must be kept and must be kept correctly.
    “falsifying or failing to keep records will not be tolerated”
  • FWO will chase and enforce and seek penalties on employers who do not do what they were told by FWO
  • Simply backpaying people for underpayment is not enough
In 2018–19 the FWO conducted over 2,500 audits. So far in 2019 they have issued 176 compliance notices. The anonymous report tool has received 10,000 tip-offs about the hospitality industry.

Other comments

Staff turnover rates are at a ten year high of around 18%.
Half of younger workers leave their employment each year.
Small and medium business employ around 70% of all workers.
There are lots of employers … , no doubt, who do the right thing if it’s clear what they need to do. Luckily, the tools are there on our website to help them.

Single Touch Payroll – Hot Issues

Employers should embrace STP before 30 September 2019 – There is a General Deferral until then for Small Employers.

From 30 September the ATO will begin chasing employers to get them onboard.

ATO are following up all large employers who have not commenced reporting through STP (including government departments). There is less than 10% of large employers who are not yet reporting and only 5% (approx 3500) who are not subject to a known deferral.

Closely held employees do not have to be reported until 30 June 2020 but you may if you can.

To find out what is required to update your software, please call us.

End of Year Bookkeeping for TPAR

The TPAR informs the ATO about payments that are made to contractors for providing services. Industries required to report TPAR for 2019 are listed in the below table.

Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.

The ATO uses this information to identify contractors who haven't met their tax obligations.

The Taxable Payments Annual Reporting scheme for contractors applies to the industries as per below:

2013

  • Building and Construction

2017

  • Government Grants

2019

  • Courier Services
  • Cleaning Services

2020

  • Road Freight
  • IT Services
  • Security Services

What Has to be Reported?

A TPAR report requires the business to outline:

  • the contractor's name (that appears on the invoice the contractor provided)
  • the contractor's Australian Business Number (ABN)
  • the contractor's address (if known)
  • the total amount paid or credited to the contractor over the income year
  • the amount of any Goods and Services Tax (GST)

“The payment can be in whole or in part for the supply of these services. This means that payments that are only for the supply of goods and materials or salary and wages for employees are not reportable under the new rule.”

ICB feels that most of this information is already captured in the day-to-day bookkeeping processes in the accounting file. It may just mean that clients/bookkeepers need to be more diligent in capturing ABNs for suppliers and flagging those suppliers or employees (if a voluntary agreement is in place) that are reportable and assigning the payments into a separate account on the chart of accounts.

Who Can Report?

Tax Agents and BAS Agents can advise, prepare, and lodge the Taxable Payments Annual Report. Business owners can also prepare and lodge the report. The bookkeeper can assist the owner to prepare the report but may not lodge the report directly.

Reconcile TPAR to Subcontractor's Expense Account

Recommend comparing the total value of subcontractor’s expense to the TPAR report.

You may find a small difference which may be a result of

  • Goods only invoices
  • Voluntary Withholding
  • Supplier invoice not paid
  • Supplier invoice not coded to subcontractors’ expense

Prepare and Lodge TPAR

The form must be lodged either electronically or via the ATO paper form.

To lodge the Taxable Payments Annual Report using electronic transfer, you need to create an electronic annual report data file using accounting software.

Note: You cannot lodge the following media forms: spreadsheets, CD ROM, DVD, USB, floppy or zip disk.

Electronic Lodgement Options

  1. Business Portal (client uses their own AUSkey)
  2. ATO Online Services for Agents using the File Transfer/Lodge File option.

TPAR Lodgement Due Date

TPAR lodgement date is 28 August each year.

Paper Form


If you want to lodge a paper form, you must complete and send the Taxable Payments Annual Report to the ATO.

Note: You must use this form; you cannot create your own form.

TPAR – Nil Report

For the 2019 lodgement year you are required to lodge Nil report if in:

  • Businesses providing building and construction services that:
    • Are no longer primarily in the building and construction industry, or
    • Didn't pay contractors for building and construction services.
  • A Government entity that:
    • Is a federal, state or territory government entity, and didn't make payments to an entity wholly or partly for providing services, and didn't pay grants to people or organisations that have an ABN, or
    • Is a local government entity, and didn't make payments to an entity wholly or partly for providing services.

Amending a TPAR

If you need to amend a Taxable Payments Annual Report, please contact us to assist you in the process.


Due Dates

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 – July Activity Statement:  21st August 2019 final date for lodgement and payment.

BAS/IAS Monthly Lodgement – August Activity Statement:  21st September 2019 final date for lodgement and payment.


4th Quarter of FY 2019: BAS Lodgement – June Quarter 2019 (including PAYGI) 28th July, 2019 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:

4th Quarter of FY 2019, April to June 2019 – contributions must be in the fund by 28th July 2019.

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.


End of Year Payroll
Payment Summaries must be supplied to employees by 14 July, 2019
Payment Summaries are due to the ATO by 14 August, 2019

Single Touch Payroll
Finalisation by 31 July 2019


Payroll Tax End of Year Return is due by 21 July 2019. As this date is a Sunday, the return is due by the next Monday 22 July 2019

Prepared by Institute of Certified Bookkeepers for its Members and their Clientele

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