HOME ABOUT US ARTICLES BLOG FAQ CONTACT US
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

Articles Blog

Business Tax Tip – Do I pay the tax due or spend the amount on growing my business?

images/Business Tax Tips.PNGBusiness in reality, can be hard – and then the tax bill comes and we consider do I pay the tax due or spend the amount on growing my business, such as advertise? What if you consider not paying tax to the ATO (Australian Tax Office), and how do I get help with paying tax owed?

The ATO explains

If you don’t pay –

If you don't pay the amounts you owe us on time:

Make sure you lodge your activity statements and tax returns on time, even if you can't pay by the due date. You'll avoid a penalty for failing to lodge on time and we'll know you're aware of your obligations.

Find out about:

Read More.

Help with paying tax owed –

If you can't pay on time, we can help you.

You still need to lodge your activity statements and tax returns on time, even if you can't pay by the due date. You'll avoid a penalty for failing to lodge on time and show us that you're aware of your obligations and doing your best to meet them.

Find out about:

Payment plan

If you can't pay by the due date, you may be able to set up a payment plan to pay in instalments. You need to consider what you can pay to ensure you can meet each ongoing payment amount, and future obligations.

If you're trying to do the right thing, we're committed to understanding your situation and helping you where possible.

In some instances we may need to know more about your financial situation and your circumstances so we can work with you to set up a manageable payment plan that suits both of us. Businesses may need to show that their business is viable.

Even if you've made a payment plan to pay late or by instalments, interest will accrue on the unpaid debt.

Note: If you default on a payment plan, before agreeing to a new plan we may ask for a higher upfront payment or ask that payments are made by direct debit, or both.

See also:

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Bookkeeping – Paid Parental Leave - What is Parental Leave Pay Australia & how do you enter in the bookkeeping accounts?

images/Bookkeeping.jpg1.   Explaining Paid Parental Leave / Parental Leave Pay

Today we explain what is the Paid Parental Leave scheme, and how to do the bookkeeping in your accounts. The scheme became compulsory on 1 July 2011 – it is an offer from the government of up to 18 weeks paid parental leave and is offered to eligible working parents of children born or adopted on or after 1 January 2011. The government makes a payment to the employer to then pass on to the employee. This post explains generally what is involved to setup and record paid parental payments within your software.

What is the current rate of parental leave?

The rate is paid at the National minimum wage. For more information see Human Services Paid Parental Leave for employers.

2.   How to does the business treat the funds received?

In accordance with Australian Accounting Standards, Paid Parental Leave funds you receive from us must be treated as a liability until you have provided Parental Leave Pay to your employee. You shouldn't account for Paid Parental Leave funds as revenue or an expense. See Reporting Requirements.

3.   How to do the bookkeeping for Paid Parental Leave (PPL)

1.     Create an account to track parental leave - We need to create a Liability account to track your Parental Leave. Alternatively, depending on your Parental Leave reporting obligations, you may want to create an Expense account to track this leave instead of a Liability account. Speak to your accountant or the ATO for the appropriate solution based on your circumstances.

2.     Create a new wages category – use the Salary type (no hours will be used) called Paid Parental Leave.

3.     Exempt Paid Parental Leave from calculating superannuation (eg. via the Super SG Category, exempt button in MYOB).

4.     Exempt Paid Parental Leave from accruing entitlementsdepending on the way the employee is set up (eg. In both Holiday and Sick you can Exempt the PPL wage in MYOB (or by default, depending on which software you use) -

a.     Hourly employees - the entitlement will not accrue as there are no hours to calculate the percentage. This seems contradictory, but normally hourly employees will accrue leave as a percentage of hours worked. While they are on PPL, they are being paid via a Salary Wage category, rather than an Hourly Wage category. Therefore having no hours on the pay cheque means that no leave will accrue.

b.     Salary Employees - need to have the Entitlement(s) deselected in their card. This is because generally these employees will be set to accrue a flat amount of hours per Pay Period/Month/Year, and unless the entitlement is deselected in their card, the entitlement will continue accruing throughout the period of their Paid Parental Leave.

5.     Note: When the employee finishes the PPL you will need to select/turn ON these entitlements again so that the leave entitlements will accrue.

6.     Receiving the payment from the government. When the employer receives parentalleave payment from the government, this needs to be recorded as a Receive Money transaction into the Liability account created.

7.     Action - when my employee is taking PPL, and Centrelink has paid the business -
In MYOB for example, you go to the standard pay and zero all the salary or hourly $ amounts, and against the Paid Parental leave category, enter the amount that is to be paid, as paid to the business (it is often several weeks in one go).

8.     Note: Paid parental leave and Payment Summaries - If you include the paid parental leave amount in the Gross Wages on your Payment Summary, you will need to account for this if you attempt to reconcile the total from the Payment Summaries with the total in your Wages & Salaries expense account. The paid parental leave amount is not shown as an expense, as it is in the Liability account, not wage account (to offset against the amount paid to you), and therefore it is expected that the Payment Summary total will be higher than the total of the Wages & Salaries expense account. For more information on Payment Summaries, see the MYOB support note Preparing and printing Payment Summaries.

9.     Removing paid parental leave - When an employee returns to work after parental leave, their card needs to be updated so the Paid Parental Leave payment will be ticked OFF from the employee's standard pay, and their normal Base Salary or Hourly will be reinstated.

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

More Articles...

  1. Business Financials – What are Generally Accepted Accounting Principles (GAAP) accounting - explained
  2. MYOB – Paying Superannuation for Employees – What reports to use
  3. Business Tax Tip – Taxable Payments Annual Report – TPAR – Now covers Building, Cleaning and Courier businesses!
  4. Business Tips –When you feel stuck – 5 ways to refresh and go again!
  5. Business Tax Tip – How to Correct GST errors
  6. Business Financials – What does the Accounting Equation Mean? What does it show?
  7. Cashflow tip – Ways to Manage Cash Flow in small Business – Understand Cash Flow
  8. MYOB – Tax Tables for 2019-2020 – to v19 (Classic MYOB)
  9. Business Tips – How to find your ideal client – Tips on how to define them
  10. Business Tax Tip – Single Touch Payroll – STP and the ATO – the new reporting method
  11. Cashflow tip – How we help to focus on key KPI to impact growth for our clients
  12. Business Tax Tip – Another 9 EOFY – End of Financial Year tax tips to prepare for Year End Now!
  13. Business Tax Tip – 9 EOFY, End of Financial Year Tax Tips to Start Year End Preparation NOW!
  14. Reckon / Quickbooks – Accounts Hosted and PC versions – How to set up and use ABA files to pay suppliers/creditors
  15. Reckon One – Simple Online Accounting – Reckon One Support, User Guides and How to use Reckon One
  16. Business Tax Tip – Tax on Annual Leave and Long Service Leave on Termination / Resignation Payout
  17. MYOB – How to set up child support in MYOB payroll
  18. Business Tax Tip – How to understand GST on the sale of assets
  19. Business Financials – The Accumulated Depreciation Asset Account on the Balance Sheet
  20. Cashflow tip – What is the difference between cashflow and budget?
  21. Reckon / Quickbooks – How to change the email message for sales invoices - Accounts Hosted and PC
  22. Business Financials – How to understand what “non-cash expenses” means and what types of non-cash transaction examples there are
  23. Cashflow tip – Top ways to have better cashflow – 5 top tips
  24. Business Tax Tip – Don’t get caught with Small Business Capital Gain Tax Concession thresholds
  25. MYOB – How to deal with overpaid retentions
  26. Business Financials – How to successfully understand the difference between Mark-Ups and Margins when pricing
  27. Business Tips – How to achieve successful selling
  28. Bookkeeping – How to enter Annual Leave that was missed?
  29. MYOB AR & Essentials – Paying super and Superstream in v19 (when not in the cloud yet) – Using the Super Portal by MYOB to be compliant
  30. Business Financials – Do you make Profit.. but have no Cash!
  31. Cashflow tip – Cashflow and Budget – What are they and how are they different?
  32. Business Financials – What is the Balance Sheet – An example and definition
  33. Reckon / Quickbooks – How to customise an invoice in Quickbooks / Reckon
  34. Business Tax Tip – Types of Business Structure in Australia – How profit is handled and taxed
  35. Business Financials – How does a Profit and Loss statement work?
  36. Cashflow tip – What does the Cash Flow Statement Show us?
  37. Business Tips – What is the last Competitive Advantage for a business?
  38. Business Financials – Tax Breaks for Business – Do they encourage and stimulate business innovation and the economy?
  39. MYOB Essentials – Assets and the CAP tax code for your Capital Purchases (assets)
  40. Bookkeeping – Redundancy – What is Redundancy Pay – How much is Redundancy pay?
  41. Xero/Reckon/MYOB - Bookkeeping entries for loans – Lending money to business
  42. Business Tax Tip – GST and Leasing – How it works
  43. Business Financials – Paying Superannuation for Employees
  44. Bookkeeping – BAS – What is the BAS statement and the accounting the bookkeeping needs to cover
  45. Cashflow tip – How to improve cash flow for business – 5 top things to act on NOW!
  46. MYOB Essentials – Why tax is appearing when only $300 is earned for the week, under the tax free threshold?
  47. Business Tax Tip – GST and Hire Purchase
  48. Cashflow tip – Making a Profit but have no cash – what are the reasons?
  49. Reckon ONE – How to Set Up and how to Report Taxable Payments Annual Report (TPAR) – and when due?
  50. Reckon / Quickbooks – How to Set up and How to Report Taxable Payments Annual Report (TPAR) – and when due?
  51. XERO – TPAR – Taxable Payments Annual Report – How to set up and report in MYOB AccountRight
  52. MYOB – TPAR – Taxable Payments Annual Report – How to set up and report in MYOB AccountRight
  53. Xero/Reckon/MYOB bookkeeping –Tax Tables for 2018-2019 – and which versions of MYOB - update
  54. Business Tax Tip – TPAR – Taxable Payments Annual Report
  55. MYOB Quickbooks Reckon Bookkeeping – New Tax Tables 2018-19
  56. Reckon / Quickbooks – Single Touch Payroll – STP – in Reckon One- Accounts Hosted and Accounts 2018
  57. Business Financials – Here are 5 End of Financial Year (EOFY) tips 2018
  58. Xero bookkeeping – Single Touch Payroll – STP – reporting in Xero software
  59. MYOB – Single Touch Payroll –STP - reporting in MYOB
  60. Business Tax Tip – What is STP - Single Touch Payroll reporting?
  61. Bookkeeping – 7 Key Tips - How to Organise Business Paperwork and Accounts
  62. Cashflow Tip – What the Cashflow Statement shows and tells us
  63. Business Tips – A new way to get a Competitive Advantage?
  64. Business Tax Tip – Do Government tax incentives for small business encourage and stimulate business innovation and economies?
  65. MYOB Essentials – Set up to Assets and GST to enter Motor Vehicle Purchase
  66. Business Tips – How Integrity Affects Business – especially Integrity of CEOs and Managers
  67. Bookkeeping – Redundancy – How does it work - How much Redundancy pay applies
  68. Xero/Reckon/MYOB bookkeeping – How to enter transfers/ payments from personal account to pay business expenses
  69. Business Tax Tip – Leasing and GST – GST on lease payments
  70. Business Financials – SBSCH – Small Business Super Clearing House – Helping small business meet super obligations
  71. Bookkeeping – The BAS (Business Activity Statement) and what you need to get form your bookkeeping and accounts
  72. Cashflow tip – Improving Cashflow in a Business
  73. MYOB Essentials – Why is PAYG tax calculating when only $300 gross is earned for a week?
  74. Business Tax Tip – GST and Hire Purchase
  75. Cashflow tip – I make profit but no cash! What is happening?
  76. MYOB Essentials (online accounting) – Tips setting up Employee – Why is there too much PAYG tax when we have ticked Tax Free Threshold?
  77. Business Financials – The Cashflow Statement – How to construct a cash flow statement
  78. Business Tips – 5 Biggest Mistakes Business Owners Make
  79. Business Tips – How to turn mistakes into opportunities for business
  80. MYOB – Overpaid supplier in MYOB –Hhow to handle
  81. Business Financials – The Cashflow Statement – What it is and how it is used
  82. Reckon / Quickbooks – ‘You cannot enter a transaction that contains both Sales and Purchase Tax Items…” - How to overcome the warning when changing tax code in general journal
  83. Business Tips – Improve your selling – help your prospect get what they NEED
  84. MYOB – SuperStream and how MYOB Account Right Essentials and Premier can help
  85. Bookkeeping – How to get your books Organised and Systemised in 6 steps!
  86. Cashflow Tip – 5 ways to get more from your bookkeeping / accountant – or be a better bookkeeper
  87. Xero/Reckon/MYOB bookkeeping - how to treat dishonoured cheques in bank reconciliation – how to record in Xero / MYOB / Reckon / Quickbooks
  88. Reckon / Quickbooks – Invoices posting to bank account – Not correct – How to fix?
  89. MYOB – Export customer card with price levels
  90. Business Tips – Some ways to avoid small business burnout
  91. Business Tax Tip – Starting a Business – ATO resources to help
  92. Bookkeeping – Using Dropbox for Company Datafiles – Does it work?
  93. Cashflow tip – How do you build teams that work in the workplace? A Productivity Boost is one benefit!
  94. MYOB – How do taxes calculate when pays were split, and using Pay Leave in Advance MYOB
  95. Business Tax Tip – Home Office Expenses allowable by the ATO for you to claim
  96. Business Financials – Financial Literacy Levels and 4 ways to send your business broke
  97. MYOB – Super stopped calculating when changed from hourly to salary in Account Right v19
  98. Business Financials – The Balance Sheet – Statement of Financial Position
  99. Reckon/Quickbooks – Wanted to know if GST had been added twice in invoice?
  100. MYOB - Error when trying to email Invoice - An Email session could not be started - Please check your MAPI installation
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

CATEGORIES


CUSTOMER LOGIN





Forgot your password?
Forgot your username?
Create an account

YOUR CART

The cart is empty

Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
© Account Keeping Plus 2012   |   Website Design by Low Cost Web Site Design Melbourne    |   Admin