A myth surrounding the employee or contractor decision is that having a registered business name makes a worker a contractor. Having a registered business name makes no difference to whether a worker is an employee or contractor for a particular job. You need to check whether your workers are employees or contractors by examining the details of the working arrangements. A worker who has a business name might be a contractor for one job, and an employee for another. It all depends on the specific terms and conditions under which the work is performed. See the ATO Employee/contractor decision tool will help you correctly determine whether your workers are employees or contractors. By answering some simple questions, the online tool will provide you with an answer you can rely on. It is free, anonymous and easy to use. Employees, contractors and registered business names
Wednesday, January 09, 2013
Employee–v- Contractor
Keydates - January to March 2013
The ATO has released key lodgement dates for January to March 2013 as follows:
January 2013
Date
Obligation
15 January
Income tax return for taxable large/medium business taxpayers as per latest year lodged (all entities other than individuals) due date for lodging, unless required earlier.
Payment for companies and super funds was due 1 December 2012. Payment for trusts in this category is due as per their notice of assessment.
Note: You cannot 'self-assess' a lodgment deferral from this date or assume a later date for lodgment on the basis that the taxpayer will be non-taxable in the current year.
Income tax return for the taxable head company of a consolidated group (including new registrants) that has a member who has been deemed a large/medium business in the latest year lodged - due date for lodging unless required earlier.
Payment was due 1 December 2012.
21 January
Quarterly PAYG instalment activity statement, quarter 2, 2012-13 for head companies of consolidated groups - due date for lodging and paying.
December 2012 monthly business activity statement - due date for lodging and paying except for small business clients (that is up to $10 million turnover) who report GST monthly and lodge electronically.
28 January
Super guarantee contributions for quarter 2, 2012-13 - employers must make contributions to the fund by this date.
Employers who do not pay minimum super contributions for quarter 2 by this date must pay the super guarantee charge and lodge a Superannuation guarantee charge statement - quarterly (NAT 9599) with us by 28 February 2013.
Note: Remember, the super guarantee charge is not tax deductible.
31 January
TFN report for closely held trusts for TFN's quoted to a trustee by beneficiaries in quarter 2, 2012-13.
February 2013
Date
Obligation
21 February
December 2012 monthly business activity statement for small business clients (that is up to $10 million turnover) who report GST monthly and lodge electronically - due date for lodging and paying.
January 2013 monthly activity statement - due date for lodging and paying.
28 February
Income tax return for non-taxable large/medium business taxpayers as per the latest year lodged (all entities other than individuals) due date for lodging.
Payment (if required) for companies and super funds is also due on this date. Payment for trusts in this category is due as per their notice of assessment.
Income tax returns for new registrant (taxable and non-taxable) large/medium business taxpayers - due date for lodging.
Payment (if required) for companies and super funds is also due on this date. Payment for trusts in this category is due as per their notice of assessment.
Income tax return for non-taxable head company of a consolidated group - including new registrants - that has a member who has been deemed a large/medium business in the latest year lodged - due date for lodgment.
Income tax return for any member of a consolidated group - who exits in the consolidated group during the year of income.
Income tax return for new registrant (taxable and non-taxable) head company of a consolidated group.
Self managed superannuation fund annual return for new registrant (taxable and non-taxable) self-managed super funds (SMSFs) - due date for lodgment and payment.
Note: For information about certain newly registered self-managed super funds who do not have to lodge a return, refer to the Lodgment program 2012-13 - details of the program.
Quarterly activity statement, quarter 2, 2012-13 - due date for lodging and paying - all lodgment methods.
Quarterly instalment notice (form R, S or T), quarter 2, 2012-13 - due date for payment. You only need to lodge if you are varying the instalment amount.
Annual GST return or information report - due date for lodging (and paying if applicable) if the taxpayer does not have an income tax return lodgment obligation.
If the taxpayer does have an income tax return obligation, this return or report must be lodged by the due date of the income tax return.
Due date for lodging the Superannuation guarantee charge (SGC) statement - quarterly and paying the super guarantee charge for quarter 2, 2012-13 if the employer did not pay enough contributions on time.
Employers who are lodging a Superannuation guarantee charge statement - quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They will still have to pay the remaining super guarantee charge to us.
Note: Remember, the super guarantee charge is not tax deductible.
For help with working out the super guarantee charge and preparing the Superannuation guarantee charge statement - quarterly, use our Super guarantee charge statement and calculator tool.
March 2013
Date
Obligation
21 March
February 2013 monthly activity statement - due date for lodging and paying.
31 March
Income tax return for companies and super funds with total income in excess of $2 million in the latest year lodged (excluding large/medium business taxpayers) - due date for lodging, unless due earlier.
Payment for companies and super funds in this category is also due by this date.
Income tax return for the head company of a consolidated group without a member who has been deemed a large/medium business in the latest year lodged, but with a member who had total income in excess of $2 million in their latest year lodged - due date for lodging, unless due earlier.
Payment for companies in this category is also due by this date.
Income tax return for individuals and trusts that were tax level 6 as per the latest year lodged, excluding large/medium business trusts.
Payment for individuals and trusts in this category is due as per their notice of assessment.
Important information
Weekends and public holidays
A public holiday is a day that is a public holiday for the whole of any state or territory in Australia. Where a due date falls on a Saturday, Sunday or public holiday you can lodge or pay on the next business day.
The ATO Gets Serious on Late Lodgement Penalties
The following the change came into effect on 28 December 2012
increasing the value of a penalty unit from $110 to $170.
This means the maximum penalty has increased from 5 x $110 ($550) to 5 x $170 ( $850)
FTL penalty is an administrative penalty that may be applied if your client is required to lodge a return, notice, statement or other approved form with us by a particular day, and does not do so. The application of FTL penalty is not dependent on us receiving the document - the penalty applies whether or not the document is ultimately lodged. FTL penalty does not apply to documents required to be lodged under the following Acts: What is an approved form? An 'approved form' is defined in section 388-50 of schedule 1 to the Taxation Administration Act 1953 (TAA 1953). Approved forms include: FTL penalty is calculated at the rate of one penalty unit for each period of 28 days or part thereof that the document is overdue, up to a maximum of five penalty units. Size tests also apply, so that the penalty for larger entities is multiplied by either two or five. Under most Commonwealth laws, financial penalties are expressed in terms of 'penalty units' instead of dollar figures. The value of 1 penalty unit has been $110 since 1997, and increased to $170 on 28 December 2012. For failing to lodge on time penalty, the increased rate will only apply where the first day of the relevant 28-day period or part thereof occurs on or after 28 December 2012. The size of an entity is related to its assessable income, withholder status, or its current GST turnover. We will calculate the period of time the document is overdue from the day the document is due to be lodged to the day before the document is received. If the document is not received (that is, not lodged), we will calculate the penalty from the lodgment due date to the day before the day penalty is applied. If we have not applied the maximum penalty allowed by law to a document that is not lodged, we may increase the penalty amount at a later date. The longer your client takes to lodge a document after its due date, the higher the amount of penalty that may be applied. The maximum amount of FTL penalty for any particular sized entity will be reached if the document is lodged more than 112 days after its lodgment due date We will not apply FTL penalties unless we have warned your client about a document that is late or not lodged at all - this warning may be made by phone or in writing. Generally, penalty will not be applied to a late-lodged income tax return, annual GST tax return or activity statement, where the lodgment results in either: However, if FTL penalty has been applied before the lodgment of the document, the fact that the subsequent lodgment of the document results in a refund or nil result will not be sufficient reason for the penalty to be remitted. for more information, visit the ATO at http://www.ato.gov.au/taxprofessionals/content.aspx?menuid=0&doc=/content/20967.htm&page=1&H1 What is FTL penalty?
How is FTL penalty calculated?
When will FTL penalty not be applied?
Sunday, January 06, 2013
Office Closure
Our Office is closured until Monday January 14, 2013.
Messages may be left on 02 9891 5222.