When operating a business, you encounter various tax reporting obligations. The frequency of these obligations to the ATO varies based on the size of your business, ranging from monthly, quarterly, to annual reporting. These responsibilities include tasks such as Single Touch Payroll (STP), Instalment Activity Statement (IAS), Fringe Benefit Tax, and Business Activity Statement (BAS).

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STEP Single Touch Payroll (STP)

It is the way you report your employees’ tax and super information to the ATO. It requires employers to report this data to the Australian Taxation Office (ATO) with each pay run, ensuring real-time accuracy and compliance. We can play a crucial role in navigating the complexities of STP. Firstly, we can assist in setting up and configuring STP software to seamlessly integrate with the company’s payroll system. Secondly, we can ensure accurate and timely reporting, avoiding penalties and non-compliance issues. Furthermore, we can keep you updated on STP legislative changes, helping businesses adapt and remain compliant with evolving regulations.

STEP Business Activity Statement (BAS)

The Business Activity Statement (BAS) is a crucial component of the Australian tax system, requiring businesses to report and remit various taxes such as Goods and Services Tax (GST), Pay as You Go (PAYG) withholding, and other obligations. This statement is typically lodged either monthly or quarterly, depending on the business’s turnover. We specialize in providing comprehensive assistance with Business Activity Statement (BAS) preparation and lodgement. Our experienced team can efficiently compile and organize your financial data, ensuring accurate reporting of GST and other tax-related transactions. We also offer expert guidance on claiming eligible input tax credits and deductions, optimizing your tax position. With our support, you can confidently navigate the BAS process, adhere to regulatory requirements, and focus on your core business activities.

STEP The Instalment Activity Statement (IAS)

It is a tax reporting requirement in Australia that involves businesses making regular payments toward their expected income tax liability and employers fulfilling the PAYG withholding Tax Liability. These payments are made in instalments throughout the financial year, helping businesses manage their tax obligations more effectively. Depending on the size of Payroll you may have to lodge IAS on a monthly or quarterly basis. We can provide valuable assistance with the Instalment Activity Statement (IAS) process. Our expertise lies in accurately calculating the required instalment amounts based on your business’s projected income and withholding tax liability. With our guidance, you can optimize your cash flow, avoid underpayment or overpayment penalties, and maintain compliance with tax authorities.

STEP Fringe Benefit Tax (FBT)

As business owners, we universally recognize that our employees constitute our most valuable assets. In an effort to foster employee loyalty, business owners’ endeavour to provide incentives beyond salaries. When extending non-salary perks to your staff, such as company cars, housing, gym memberships, and entertainment expenses, you incur the responsibility of FBT reporting. Maintaining distinct records for FBT is crucial, as it enables your accountants to accurately calculate taxes for your fringe benefits. FBT reporting occurs on an annual basis, with the reporting year spanning from 01 April to 31st March, distinct from the financial year. Many business owners perceive the tax system as complex, which sometimes deters them from extending benefits to their employees. Our proficient team of accountants specializes in simplifying the intricacies of Fringe Benefit Tax (FBT), making it more accessible for business owners. We offer assistance in precisely identifying, calculating, and reporting the fringe benefits offered to your employees. With our guidance, you can effectively navigate the detailed FBT regulations and exemptions, thereby maximizing benefits while minimizing tax obligations.

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Frequent Asked Questions
Got questions? Well, we’ve got answers.
How often is a BAS lodged?

The frequency of lodging a BAS depends on the size and turnover of the business. Generally, businesses lodge their BAS monthly or quarterly. However, there are also options for annual lodgement for certain small businesses.

What is an IAS, and when is it used?

An Instalment Activity Statement (IAS) is used by businesses to report and pay their Pay as You Go (PAYG) income tax instalments, Goods and Services Tax (GST) instalments, and other tax liabilities more frequently than the BAS. It’s often used by businesses that do not have a GST turnover.

What is a TPAR, and who needs to lodge it?

A Taxable Payments Annual Report (TPAR) is a report that certain businesses need to lodge with the ATO. It includes details of payments made to contractors for services provided. Industries such as construction, cleaning, and courier services are required to lodge a TPAR.

How is FBT calculated, and when is it reported?

FBT is calculated based on the taxable value of the fringe benefits provided. Employers are required to report and pay FBT annually on their FBT return, which is usually lodged by 21 May each year.

Who needs to use Single Touch Payroll (STP)?

All employers, regardless of their business size, are required to use Single Touch Payroll to report their employees’ salary, wages, PAYG withholding, and superannuation contributions to the ATO. This includes businesses, not-for-profit organisations, and government entities.

How do I report through Single Touch Payroll (STP)?

Reporting through STP is integrated into your regular payroll process. You need to use payroll software that is STP-enabled to send the required information to the ATO each time you process payroll. The software will generate and send the necessary reports directly to the ATO.

What are the due dates for paying employees’ super contributions?

Super contributions for your employees must be paid by the 28th day following the end of each quarter. The due dates are January 28, April 28, July 28, and October 28.

What happens if I miss the due dates for super payments?

If you miss the due dates for super payments, you could face penalties and consequences. The Australian Taxation Office (ATO) takes non-compliance with super obligations seriously.

Trust the Leading STP, BAS, IAS AND FBT Specialist. Contact us today to discover how we can assist you.
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