Wednesday 18 November 2015

DO YOU KNOW YOUR SUPERANNUATION OBLIGATIONS?



Case Study

Sole trader Chris failed to pay $2,500 superannuation guarantee for his employee Ron for the June 2015 quarter. Ron is 21 and a full time employee who has been working for Chris for two months. Chris is legally required to pay 9.5% of Ron’s ordinary times earnings to an eligible superannuation fund by the 28th day past the quarter. However Chris is new in business and was not aware of his superannuation obligations.
  
The ATO became aware of the non-payment of superannuation and issued an audit notice. Chris then realised he hadn’t made any payment and went to his accountant for help. Chris’s accountant told him to obtain Ron’s nominated superannuation fund details and then prepared a Superannuation Guarantee Charge Statement that calculated the following:

·        Superannuation guarantee shortfall $2,500
·        Administration fee $20
·        Interest on shortfall owed to Ron $134.25. Interest is payable from the
         beginning of the applicable quarter rather than the end of the quarter

  
When payments are late employers risk the following:

·        Large penalties and interest charges
·        Risk of staff loss
·        Legal action
·        Continued audits from the ATO 






Should you wish to discuss your superannuation obligations further please feel free to contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Wednesday 4 November 2015

IS YOUR DONATION TAX DEDUCTIBLE?

For you to claim a tax deduction for a gift, it must meet four conditions:

1.       The gift must be made to a deductible gift recipient (DGRs).
2.       The gift must truly be a gift.
3.       The gift must be money or property.
4.       The gift must comply with any relevant ATO gift conditions.

The amount you can claim depends on the type of gift. For gifts of money, it is the amount of the gift but it must be $2 or more. For gifts of property, there are different rules, depending on the type of property and its value. A tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made. However, you can elect to spread the deduction over five years in certain circumstances.

You cannot claim a donation deduction for items that provide you with a personal benefit, including raffle tickets, chocolates and pens, attending fundraising dinners etc.


If you have questions please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.
 
We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.