What is PAYG Withholding and What Employers Must Know?

Many of you may be unaware of the PAYG system and how it can affect your business. The ATO has some methods to help you make tax season easy for you each year. One of the most common methods is known as Pay As You Go (PAYG). If you don’t know about it, you can ask your experienced tax accountant. If you don’t have a tax accountant, then you can also hire near your area by searching for ‘small business accountants near me.’ In today’s blog, we’ll discuss PAYG withholding and other related aspects to it. Let’s get started:

What is Pay As You Go (PAYG)?

PAYG or Pay As You Go is a system where the ATO allows you to pay some portion of future liability in advance to minimise the amount, which the ATO owns at the end of the financial year. If you pay regularly throughout the year, it can minimise the risk of paying a large tax bill later on and help businesses manage their cash flow in a better way. There are two types of PAYG, such as:

• PAYG Withholding (or PAYG – W) is a pre-payment on your employees’ behalf for their personal income tax obligations.

• PAYG Instalment (or PAYG – I) is a pre-payment for the business for its own income tax obligation.

What is PAYG Withholding?

PAYG is a withholding tax that you need to pay incremental amounts of the income of your business to the ATO. And, it is the tax payment you make throughout the year on the behalf of contractors, employees, and other payees. When you are allowed to make partial payments, you can protect yourself from paying a large amount on tax bills at the end of the financial year. Apart from this, if you want someone with vast knowledge of accounting, you can hire a chartered accountant. If you are living in Victoria, then you can also search for ‘chartered accountant near Victoria.’

Do You Need to Pay PAYG Withholding?

Many of you may have a question about whether you need to pay PAYG withholding or not. Well, if your organisation pays any of the following, then you have to pay PAYG withholding:

• Company directors

• Employees

• Members of parliament (Office holders)

• Businesses that don’t quote their Australian business number

The following are a few things you need to keep in your mind:

• You need to register for PAYG withholding before you pay which is subject to withholding. It is needed even if you don’t withhold an amount from a payment that is made.

• You must cancel your PAYG withholding registration if you stop to be an employer.

• Before you sign the work agreement, you have to check that the worker can work in Australia legally.

• PAYG withholding is not the same as payroll tax, which is a state tax.

Moreover, you can also ask your tax agent about these guidelines because they always keep themselves updated with these laws. If you don’t have an accountant, then you can also search for ‘accountants near me’ to know what accountants are near your location so you can choose one.

What are Your PAYG Obligations?

Being a business owner, you would have an obligation under the ATO rules to get tax from the payments you pay to employees and businesses to make sure that they fulfil their end of the financial year requirements. To check whether you have a withholding obligation or not, check if the following conditions apply:

• You are an employer

• You hire other workers, such as contractors and both of you enter into a voluntary agreement to withhold amounts from your payments to them

• You pay businesses that don’t quote their ABN

In addition to this, to know more about each and every factor of tax-related matters, you can hire a tax accountant. If you are living in Melbourne, then you can also look for tax accountants near Melbourne.

Conclusion

As an employer, it is important to know about PAYG withholding to know whether you should pay PAYG withholding or not. The blog also shares information on what will be PAYG withholding obligations. To know more about it, you can also contact Reliable Melbourne Accountants.

Do You Need Taxation Accountants to Lodge Your Tax Return?

Most probably, every business owner knows that lodging a business tax return is a difficult task when you are not aware of what documents are important during tax season. If you have a tax return accountant by your side, then it will become easy for you to lodge your tax return. Tax accountants are experts in filing tax returns of a specific industry, and some are experts in a specific area of tax. Thus, make sure to choose one that matches your business requirements. In today’s blog, we’ll discuss what benefits you can get if you hire a tax accountant to lodge your tax return. Let’s get started:

Why You Should Take Help from Taxation Accountants to File Your Tax Return?

If you are confused about whether you should manage your tax yourself or hire a tax accountant. The answer would be tricky. However, taxes are not simple as you may think and for individuals who are weak in managing numbers, then filing taxes would be difficult and stressful for them. Thus, it would be best to seek help from a professional tax accountant to file your tax return. You have to pay a fee for hiring a tax accountant, but expert tax accountants for small business can save you from paying penalties or fines because of late or incorrect filing of tax returns.

Here are some advantages that you can get by taking help from a tax accountant:

·        No matter how carefully you file your tax returns, it is common to make mistakes that could lead to fines or an audit. However, a tax accountant who has a wealth of knowledge and experience in filing tax returns with less likely to make mistakes, so it would be easy for you to manage other business tasks.

·        If you don’t know what expenses you can claim or what are possible tax deductions for businesses, then it is a sign that you need to hire an expert tax accountant who knows about potential tax deductions for businesses.

·        A qualified tax accountant who is specialised in working with taxes can be a blessing for you during tax season. When you hire an expert tax accountant for your business, then you can be sure that everything will go smoothly.

·        Budgeting is extremely important when you want to grow your business. An experienced tax professional can easily assist you in forecasting a business budget that will help you achieve your business goals. Accountants can help you predict future revenues and costs by using their access to your financial data so you can make the right business decision.

·        The biggest advantage of hiring tax accountants is that they not only help you with filing tax returns but are also good financial advisors. They work closely with your business and know what you aim for, they offer you relevant business advice to grow your business.

Documents You Need to Give to Your Tax Accountant for Tax Return

Well, in the below section, we have given a checklist of documents that you need to provide to your tax accountant for your tax returns:

Basic Documents

·        Tax File Number (TFN)

·        Bank details

·        Your Medicare number for medical expenses

·        Children and spouse details

·        Income Tax Assessment of last year

Your Earnings

·        Payment summaries from the place where you’ve received your income

·        Details regarding foreign earnings

·        Details or statements on earnings from managed funds

·        Any interest you received from building societies or banks

·        If you have a spouse, then you need details of their expenses and earnings

·        Any other income received

Deductions

·        Receipts for donations and gifts

·        Medical receipts

·        The super contribution you want to claim as your deductions

·        Expenses for managing taxes, i.e. tax professionals

·        Information regarding your income protection insurance

·        If you are self-employed, then contributions to superannuation, to name a few

All of the above-mentioned documents are some important documents that you need to give to your tax accountant while lodging your tax return. The thing that you need to keep in your mind is that ask your tax accountant about possible tax incentives to increase your tax deductions. Your tax accountant will work to help you get maximum tax deductions. Moreover, before proceeding to tax season, it is necessary to focus on your business books. The most important part is bank reconciliation which is performed by an expert bookkeeper because accurate transactions are important while filing tax returns. Thus, you need to reconcile your bank accounts before your tax accountant proceeds further to lodge your tax return.

Wrapping Up

The blog shares information on the importance of hiring a tax accountant when it is time to lodge business taxes. Apart from this, you also came to know what information or documents are required to give to your accountant to help him/her file taxes. Further, you can get more details on taxes by contacting Reliable Melbourne Accountants.  

Important Tax Return Information 2022

 

Who can Complete Your Tax Return?

You can hire a best small business accountant Melbourne to finish your tax return for you:

·        You can get assistance from friends or family, but they are not allowed to charge you.

·        Tax help is a free service delivered by neighbourhood volunteers who have been trained to support persons making $60000 or less with the preparation of their tax forms. Volunteers with Tax help do not charge a fee for their services. Volunteers with Tax help can help you in person at a tax help centre, over the phone, or online.

·        You can only be charged for filing your taxes by a registered tax agent.

Lodge Your Tax Return by 31 October 2022

Unless they have given you permission to file it later or you have a later due date because a registered tax agent prepared your tax return, you have until 31^st October 2022, to file tax return.

If you are unable to file your tax return by 31^st October 2022, contact small business accountant Melbourne as you can before that date to inquire about your options for filling at a later time.

Failure to Lodge on Time Penalty

If people unable to filed tax return by the deadline, they may impose a late filling penalty.

Typically, up to a maximum of five penalty units, they add one penalty unit for each 28 days (or portion thereof) that your tax return is over late. Refer to failure to lodge on time penalty for further details regarding penalty units. 

Tax accountant near me said that even if there is no tax due, they have the right to impose the penalty. However, it is against government policy to impose a fine when:

·        No tax is payable

·        You willingly file your tax return

Where to Send Your Tax Return

Within Australia

We will lodge your tax return online with myTax for information on how to do so. The majority of myTax refunds are sent out in within two weeks. To file a paper tax return, we mail it in the included, pre-addressed envelope. For paper tax returns, the majority of refunds are handled in 10 weeks.

From Overseas

Accountants near me said that the majority of myTax refunds are sent out in within two weeks. To file a paper tax return, we mail it in the included pre-addressed envelope. We address the letter in your own envelope and mail it. For paper tax returns, the majority of refunds are handled in 10 weeks.

When can You Anticipate Receiving Your Assessment Notice?

Your tax return will typically be processed within the following time frame:

·        Two weeks if you file electronically

·        Ten weeks for paper filings

Your assessment notice will be:

·        Regardless of whether you lodge online or on paper, if you have a myGov account, it will be sent to your myGov mailbox.

·        Best small business accountant Melbourne said that if you do not have a myGov account, it will be mailed to you.

Your Right to Make a Complaint

They encourage your right to file a complaint if you feel that they have not lived up to your expectations or have not behaved in a manner consistent with the Taxpayer’ charter. They pledge to take complaints seriously, respond to them immediately and fairly, and use them as opportunities to improve.

You have the right to request a formal review of a technical decision they made on your tax affairs if you disagree with it (disagree with or object to an ATO decision) can protest an ATO decision by referring to dispute.

Small business accountant Melbourne advised you to attempt to resolve the issue with the ATO officer you have been working with (or the phone number you were provided) before deciding to file a complaint. Talk to that officer’s manager if you are still unsatisfied, and if you are still unsatisfied, think about filing a formal complaint. 

How to Make a Complaint?

To voice a complaint:

·        You can lodge your online complaint at Complaints, Compliments, and Feedback. 

·        You can also call on their complaint number which is 1800 199 010 from 8.00 am- 6.00 pm Monday to Friday except public holidays.

·        You can phone the National Relay Service on 13 36 77 (if you have a speech, hearing, and communication problem).

·        Send FAX to 1800 060 063

·        You can write to below mentioned address suggested by tax accountant near me. 

Australian Taxation Office

PO Box 1271

ALBURY NSW 2640

Final Say

We hope that you are fully equipped with the important tax return information 2022. Reliable Melbourne Accountants provides professional accountants to individuals and businesses with better accounting services. By searching accountants near me you can take our professional services at very reasonable rates can.