Payroll Tax: What is It and Why is It Important to Pay?

If you are a business owner, you must know about payroll tax from the moment when you hire your first employee. It is for employers and based on the amount of the monthly wages paid to the temporary, permanent and casual employees and certain contractors. You can seek help from taxation accountants if you find difficulty understanding payroll taxes. To know more about payroll tax and its importance, keep reading this blog:

What is Payroll Tax?

Payroll taxes are considered financial obligations you and your employees are liable to pay. There are several types of payroll taxes – some are paid to the federal government and others are paid to the territory or state authorities. When it comes to the payroll tax, it is paid to the territory and state authorities on the money that employees earn. Being an employer, you need to calculate an estimate of those taxes and pay them to the government authorities on your employees’ behalf. If you don’t know how to calculate payroll tax, you can opt for taxation services where a tax accountant will help you.

What do You Need to Register for Payroll Tax?

If you are registering for payroll taxes, then you might have to submit a few details. Once you start entering details, they can’t be undone. Usually, you need:

• Australian Business Number (ABN)

• Contact, address, and bank details

• The date when you first employed staff

• All payments to employees for the existing/current year and the four previous years, including:

1. Fringe benefits

2. Wages and salaries

3. Termination payments

4. Allowances

5. Contractor payments

6. Director fees

7. Commissions and bounces

8. Shares and options

9. Employer superannuation contributions

You can hire Australian taxation accountants for your company so you can rely on them for payroll taxes. The detail that you need to provide while registering for payroll tax may differ from state to territory.

Why is It Important to Pay Payroll Tax?

When you think of payroll tax, it is important for the proper functioning of the tax system. State, territory and federal authorities depend on the employers to accurately calculate, evaluate, and submit taxes to ensure the tax system is operating properly. If you don’t have enough time to look after these types of taxes for your business, then it is advisable to seek help from taxation accounting services. Payroll tax finances the territory or state’s budget where the workers work. It also ensures that employees don’t need to pay a total sum of taxes at the end of the financial year.

Is There Any Difference Between Income Tax and Payroll Tax?

Yes, income tax and payroll tax both are different. The primary difference between income tax and the payroll tax is that payroll tax depends on the amount you pay your employees and contractors as wage. On the other hand, income tax depends on the business’s taxable earnings. When you or your taxation accountant in Melbourne calculate your payroll tax, then your company’s income is not considered.

Do You Need to Pay Taxes on Payroll?

As an employer, you are required to pay taxes on the payroll if your total payroll exceeds or meets a threshold that is usually determined by your territory and state authority. When the tax is collected and paid by the employer, it means the amount is coming from the employees’ wages. You can check whether you meet or exceed a threshold according to the limit set by your state or territory authority. Thus, it is important to understand the federal regulations and state or territory authority to know where you have a tax obligation. Despite this, you need to have accurate business books before you calculate to pay any tax. For this purpose, it is advisable to hire a Melbourne bookkeeper.

Conclusion

You need to have an extensive amount of knowledge to ensure the accuracy of payroll taxes. If you want to make sure that your company calculates and submits your payroll taxes on time and accurately, then it would be the best idea to hire a tax accountant for your company. If you are running a business, it is important for you to pay all types of taxes to which you are liable to avoid any type of penalty or fine. Moreover, you can also seek help from Reliable Melbourne Accountants for accounting solutions for your business. 

Benefits of Hiring a Registered Tax Accountant for Your Company

The Australian taxation system is dynamic and stringent. After some time, new tax laws and regulations are imposed. Taxpayers whether businesses or individuals must know about new tax laws to avoid penalties. Taxation accountants can help businesses and individuals struggling with tax preparation and lodgment of tax returns. The tax returns filing process will become easy and seamless for you with tax professionals offering their assistance throughout the taxation process. By hiring a tax accountant, you will get peace of mind. Rather than investing your valuable time in preparing and filing tax returns, it would be better to hire a professional tax accountant. In today’s blog, we’ll talk about the benefits you can get by hiring a registered tax professional for your business.

Why Should You Hire a Registered Tax Professional?

If you are not aware of tax rules, it might be difficult for you to prepare and file tax returns. And, the wrong lodgment of a tax return can lead to tax fines and penalties. To avoid tax penalties, you must seek help from someone who is an expert in managing and filing tax returns. For this purpose, you should look for accounting services for your company. For individuals or business owners, who are not tax accountants, tax is a complex task, which is why they prefer hiring a professional and registered tax accountant to get a possible refund. Here are some benefits that you can get by hiring tax accountants:

• On Time Tax Lodgment

Tax preparation and lodgment can be an overwhelming process for a beginner or one who is not an expert in managing taxes. The filing of tax returns can be delayed if there are many mistakes in the form. As a result, there will be a high chance of not lodging tax returns on time and accurately.

• Compliance with New Tax Laws

Almost every year, Australian tax rules and regulations change. With the new tax rules, it becomes challenging for businesses and individuals to lodge their taxes that may not be aware of new updates. However, it is important to comply with new tax laws to prepare and file tax returns. Otherwise, they may have to go through an audit or inspection. It can be a stressful situation for business owners. However, you can avoid hassles by reaching an accounting firm in Melbourne.

• Get Tax Planning Services

Before preparing and filing tax returns, tax planning must be done in the right way. Being inexperienced in tax planning, you should avoid it, and it would be best to ask your tax accountant to do it for you. As a result, you can better focus on your business activities and can make business strategies to grow your business. When you seek help from an accountant, then you will also get suggestions on managing taxation issues that come into your company.

• Money and Time Saver

For inexperienced individuals, the tax preparation and paying process can be difficult and time-consuming. Checking out all the financial transactions generated by bookkeepers in Melbourne and other related activities can take a lot of time in tax preparation. It would be better to seek help from a tax agent instead of managing everything on your own and struggling with the financial documents. Accountants and bookkeepers can save you money and time by helping you throughout the taxation process.

• Avoid Tax Penalties and Audits

The wrong submission of information or incorrect tax filing can lead to tax penalties and audits from the ATO. The ATO may release audit orders for suspected taxpayers. Your taxation process can be simplified if you hire a tax agent, and you can also avoid this stressful tax audit situation. Many business owners decide to prepare and file a tax return on their own to save money but end up paying tax fines when they submit wrong information while filing tax returns. Thus, it would be beneficial for you to hire a small business accountant in Melbourne to avoid tax penalties.

Conclusion

It is difficult for taxpayers to keep up with new tax laws, so they must hire registered tax accountants because they are experts in handling tax-related tasks. If you want to get the best accounting solutions for your company, you can contact Reliable Melbourne Accountants.

How Taxation Accountants Can Benefit You When Filing Taxes?

Many business owners find tax season stressful, especially when they have to manage everything on their own without taking help from a tax return accountant. Therefore, if you don’t want to make your tax season stressful, then it would be beneficial for you to hire a tax accountant. If you are not aware of possible tax deductions, then you may be paying more than necessary. However, tax accountants are experts in managing taxes and have wealth of knowledge regarding tax deductions to help you save money. In today’s blog, we’ll talk about what benefits you can get by taking help from a tax accountant for your business.

Let’s get started:

Methods through Taxations Accountants can Benefit Your Business

With greater accuracy, less stress, and optimised funds, we understand every business owner is hiring a tax accountant for their business. No matter whether you are a startup business owner or have already a large business, if you want to grow your business, then you need to focus on each and every business activity but if you are only focusing on business accounts and taxes, then it would become difficult for you to focus on business growth, right? What if you hire a taxation accountant for your business? Well, if you hire someone to look after your tax returns, then you are more likely to grow your business without concern about taxes. Take a look at the following section to know how a tax accountant can benefit you:

·        Reduce Your Taxes

An experienced business accountant knows tax rules and regulations and will use the wealth of knowledge to help you reduce the taxes that you have to pay. As a business owner, you will have several opportunities to reduce your taxable income, but the thing is that you need to grab those opportunities. However, many business owners don’t know what and how to grab opportunities to minimise their taxable incomes, this is where tax accountant Melbourne can help you.

·        Increase Tax Deductions

When you hire a tax accountant for your business, then you will notice that your tax deductions and tax refunds are increased. Business accountants who are specialised in helping small business owners will know how they can help businesses get the most from their tax returns. A professional accountant also helps you in spotting all the tax deductions that you are entitled to. They will help you with potential tax deductions to help you pay less.

·        Up-To-Date with Tax Laws

Can you confidently say that you are up-to-date with Australian tax laws? If you are not, then this is the time when a small business accountant in Melbourne can help you because accountants understand that this is not your field of expertise. Everyone knows that Australian tax laws are continuously changing. If you are not aware of these new tax laws, then you could accidentally go against those laws. If you don’t want to pay penalties or fines for accidentally violating tax laws, then you should take help from a tax accountant. As a result, a tax accountant can save the business money.

·        Avoid Errors

As a startup business owner and if you are managing your taxes on your own, then there is the possibility that you could commit some mistakes. When you have to maintain a work-life balance simultaneously, then the chances of mistakes occurring double. In addition to this, if you don’t have enough time to look after your business books and business accounts, then you need to get a bookkeeper service as well as an accounting solution.

·        Save You Time

Nothing can beat the convenience of hiring a professional accountant to get your accounting job done accurately the first time. Hiring a tax accountant for a tax return is a good idea. Many of you may think that why hire a professional tax accountant if you can do it on your own, right? Well, you can do it on your own only if you have sufficient time, but business owners, who want to grow their business and don’t have enough time to prepare and file taxes, are required to hire a tax professional for their business. You can save time and invest your precious time in making a robust business strategy to boost your business growth.

Conclusion

If you are confused about whether you should hire a business accountant or not, then you can read all the above benefits of hiring a tax accountant. Moreover, you can get accounting solutions for your business by reaching Reliable Melbourne Accountants.

Significance of a Taxation Accountant for a Startup Business

If you are a startup business owner, reducing unnecessary expenses and increasing profits are probably your topmost priority. For this reason, they need to have well-maintained books of accounts, just in case an investor likes to check the profit statements. This is where an accountant comes to play his/her role. Hiring an accountant to deal with business finances would help you in the long run. To manage your business taxes and other legal tasks, it is better to take help from taxation accountants.

Many small business owners like to manage their business taxes and business accounts on their own, but if you hire a tax accountant for your business, then you can save money in the long run. In today’s competitive world, it is quite challenging for business owners to do their own taxes and look after bookkeeping and accounting. Thus, it is important to hire accountants so they can make a strong business strategy to gain more profit.

Importance of Taxation Accountants in a Business

Ensuring your business is following all the tax rules and regulations is one of the most important responsibilities of a company’s accountant. Furthermore, a professional and experienced accountant will offer you more than preparing financial statements. The following are core responsibilities of a tax accountant:

·        Financial Operations

A professional accountant will be responsible for performing financial tasks, including:

o   Gathering and recording finances

o   Analysis of business finances

o   Showing financial reports

o   Making sure the accuracy of financial reports of a business

In a small business, an accountant gathers financial data, performs financial entry, and generates a report. In a big company, an accountant may need to be a financial advisor and show financial data within and outside the company. Furthermore, an accountant can also help manage third parties, such as clients, vendors, and other institutions.

·        Financial Advisor and Analysts

Accountants are great financial advisors and analysts. It means they can help you make the right business decisions, from basic order supply to bill payments. In addition to this, they can also advise you on business functions, expenditures, revenues, and financial commitments. Tax agent Melbourne can help you know where you can save money or reduce taxes.

 

Accountants’ suggestions help you develop relevant procedures, resources, and strategies to deal with a particular financial issue or situation. Despite this, accountants also help evaluate the feasibility of investments. Before an investment, there is a need for proper analysis of costs and estimation for future cash flow.

 

·        Look after All the Financial Transactions

If you are running a business, then you must know what comes in and out of your business in the form of finances. If you are unaware of these financial transactions, then you won’t be able to prepare and file for business taxes. A tax accountant understands your business needs and guides you accordingly. Despite this, bookkeeping services are also important to track each financial transaction because, with accurate bookkeeping, a bookkeeper can help an accountant to proceed further. Thus, accounting and bookkeeping for small business, both aspects are essential to run business smoothly.

 

·        Help You with Business Planning

An effective business plan will guide you on how to achieve your business goals and help you secure funding. Accountants will make sure your business plans are realistic, achievable, and updated.

 

·        Projection of Budget Expenses

During the starting phase of your business, it is important to lower your expenses as much as you can. With the help of a cash flow statement, you can regulate the flow of money and understand where to invest. A tax accountant Melbourne will help you understand how you can manage your expenses legally to gain benefits as per the work you do and the niche you work in.

 

Well, nothing is fixed in the business, and everything gets changed according to the market environment, but it doesn’t mean that you can’t estimate your earnings. An accountant can help you with financial prediction and keep you better organised for what is going to happen next.

 

·        Suggestion of Possible Tax Deductions

When it comes to increasing business profit, then you must take help from an accountant to get accounting services. An accountant can help you get potential tax deductions. Tax accountants know different tax deductions that businesses can claim. An experienced and professional accountant can help you increase your deductions. As a result, you can get a considerable reduction in your tax bills.

 

·        Manage Business Growth

Accountants help small business owners effectively increase their profits. They can help you by suggesting different ways to reduce unnecessary costs and increase revenue. They can also help you identify new markets for your services or products.

Conclusion

Accountants are responsible for considering internal as well as external factors of your business to help you increase profit. They can help you by keeping your financial records accurate, offering you valuable advice, and managing your business finances. If you want to stay on top of business accounts, then you can contact Reliable Melbourne Accountants.

Lodgment Program Framework in Australia

BAS agents and registered tax agents play a crucial role in assisting taxpayers in meeting their superannuation and tax lodgment obligations. Taxation accountants provide a lodging option that allows for progressive lodging over a 12- month period in managing this workload. By assessing the success of the lodgment programme, registered agents are encouraged to complete on an even playing field.

The framework familiar agents who:

·        Have Quality Practice Management

·        Lodge Electronically

·        Are Consistently on Time

In order to acquire the lodgment programme due dates, you must:

·        Lodge electronic fringe benefits tax and income tax returns (unless there are extraordinary circumstances).

·        At least 85% of your clients’ current-year returns should be received on time.

“On time” refers to returns being received by the submission programme due date or in the case of a deferral, the deferred due date.

How to Fulfill the Performance Criteria?

To assist people to fulfill their performance, tax agent Melbourne recommended that:

·        If an unanticipated circumstance has prevented you or your client from lodging an obligation, you may think about requesting a lodgment deferment.

·        If an unexpected event has affected your entire practice, ask for assistance from the sponsored lodging programme.

·        Up-to-date your clients’ list.  

·        If your client is not required to file a return for any particular year, notify the government.

Electronic Lodgment

The Tax return accountant said that to get the deadlines for the lodgment programme, you must electronically lodge all of your customers’ tax returns.

The only electronic route for lodging your clients’ tax and annual returns is the Practitioner Lodgment Service (PLS) at the movement:

Individual and Trust Tax Returns

·        Company Tax Return

·        Partnership Tax Return

·        Fringe Benefits Tax Return

·        Self-Management Income Tax Return and Superannuation Fund Annual Return

If You Lodge By Paper

Only tax returns that are lodged electronically are subject to the due dates offered under the lodgment programme. Tax accountant Melbourne said that they may impose a late lodgment penalty if you file a paper tax return after the document’s statutory due date.

You must file electronically unless you are dealing with extraordinary circumstances. You can request a lodging deferral if extraordinary or unforeseeable circumstances in your practise prevent you from lodging by the deadline.

Electronic Lodgment Exclusions

We acknowledge that there are situations in which electronic filing is not feasible owing to schedule or software constraints. When either of the following applies, we shall exempt lodgment from the electronic requirement.

·        They haven't provided an electronic version of a tax return.

·        Software availability does not coincide with a crucial deadline.

Forms Excluded from Electronic Lodgment

Taxation accountants said that according to the framework for the Lodgment Program, the following tax return types are exempt from the electronic lodgment requirement for 2021–2022.

·        Returns for public unit trusts or large managed investment trusts

·        SAP (Substituted Accounting Period) tax returns, which are those that must be filed while the current year's software is not yet ready. These taxpayers are affected.

If You Do Not Meet the Performance Requirement

If you fall short of the benchmark performance goal of 85% for the 2020–21 programme years, it won't have a detrimental effect on your settling programme.

The Tax return accountant said that they want to support you in maintaining your logging programme and enhancing your performance. As a result, we might get in touch with you to talk about your situation. With your cooperation, we will use our diverse assistance strategies to guarantee that we are giving you the proper support.

Dealing with Unexpected Events

In order to help you deal with immediate problems that prevent you from submitting your paperwork by the deadline, the lodgment programme will continue to offer deferrals. Your performance in terms of on-time delivery will be evaluated using the postponed due date.

You can request assistance from the supported lodging programme to help you get back on track if you are dealing with longer-term extraordinary circumstances. Tax agent Melbourne said that they will collaborate with you and take into account your particular situation, such as:

·        COVID-19 Impacts

·        Serious Illness Within Your Family or Practice

·        Natural or Other Disasters

·        Sudden and Unexpected Staff Changes

Final Word

We hope that you are fully equipped with the knowledge needed for the lodgment program framework n Australia. Reliable Melbourne Accountants provides professional tax accountants Melbourne to individuals and businesses.

What Should You Look for in Taxation Accountants for Your Business?

Every business owner has to wear various hats as they have to work to grow their business. For many business owners, a lot of tasks play an essential role in the growth of the business, including small business bookkeeping and accounting tasks, customer support, and labour force, and more. These functions are essential for any business, keeping finance sorted and organised is also vital for businesses.

If an accounting or bookkeeping task is done wrong, then it can devastate the business. One way to reduce the stress of managing accounting tasks is to hire a reliable and experienced accountant for your business. There are many accounting organisations that offer you full-suit accounting support. Generally, accounting tasks include those services that help to maintain a company’s accounting functions. It can include daily transaction recording, accounts payable, accounts receivable, processing payroll, creating financial reports, and implementing an accounting system.

How to Find the Right Taxation Accountants?

The success of the business depends on the right accounting and bookkeeping services because most decisions are based on business finance. Hence, it is necessary to choose the right accountant for your business. Tax accountants make tax strategies that minimise or remove tax payments and manage audits with taxation authorities.

Taxation accountants not only prepare tax documents, but they interpret tax laws and explain if any changes occur in the laws. After the preparation of tax documents, tax accountants file tax returns on behalf of your company and then prepare reports to explain their work. All these tasks can be done by tax accountants and you don’t need to worry about anything. However, make sure to choose the right tax accountant for your business. The following are a few tips to help you how to find the right tax accountant for your business:

·        Conduct In-Depth Research

When you are looking to hire an accountant Melbourne, then you should look for a certified public accountant (CPA), enrolled agent or licenced tax attorney. Ensure they have a Preparer Tax Identification Number (PTIN). Apart from this, you can take reference from your friend, or business owners who have already hired an accountant.

·        Ask Basic Questions

You can ask a few questions to accountants before you hire them:

1.     How many years of experience do you have in the tax business?

You may need someone who has at least 2 years of experience in the tax business. 

2.     Any tax issue you are specialised in?

If you know that you can be audited, then ensure hire someone who can deal with audits. 

3.     How much time do you need to prepare tax returns?

You should ask how much time accountant Melbourne takes to prepare tax returns. 

4.     What is your privacy policy?

Make sure the accountant you are hiring is reliable, and you can also ask them for their privacy policy. Ensure they are not selling your personal information. Tax return accountant can do so but they have to explain why and must take permission from you. 

5.     What tax software do you use?

You can’t hire or dismiss someone based on tax software they use, but you can ask them what tax software they use. Various tax software are available, but it is a general question that you can ask.

What are Accountants Responsible for?

The list of accounting services is written below:

·       Bookkeepers of Melbourne play an important role in business’s growth. As they do more than keep financial records. Bookkeeping is vital whether you are paying vendor bills, invoicing customers, or keeping track of credit card charges. Bookkeeping helps you with accurate reporting, and you can make the right business decisions.

·        Some businesses have simple payroll requirements because they have a small team of members. If you have complex payroll requirements, then you need an expert accountant for your business. Processing payroll can be difficult and needs time that most business owners don’t have. A professional accounting firm that gives you trained accountant that will manage payroll system.

·        Figuring out the cash flow of the business is a tricky job. Unexpected bills, fluctuating sales, etc. can shake your business economy. Accountants can manage and forecast your cash flow.

·       Apart from managing the daily financial transactions of a business, an accountant also prepares monthly financial statements for your business. They also reconcile the balance sheet accounts and check the results to make sure everything is working accurately.

·        A tax return accountant will be responsible for preparing and filing tax returns for your business on your behalf.

Conclusion

If you hire an accountant for your business, then you can create powerful business strategies and make a decision based on business finance generated by your accountant. When your business books and accounts are accurate and up-to-date, then you can focus on business growth rather than on managing business books and accounts. To hire professional accountants, you can contact Reliable Melbourne Accountants, which is a reliable accounting firm based in Melbourne.