Single touch payroll commences from the 1st July 2018 and whilst it only now applies to businesses with 20 or more employees, those with 19 or less employees will be required to adopt Single Touch Reporting by the 1st July 2019.
The are four main business structures including Sole Trader, Partnership of Individuals, Private Company and Discretionary Trusts. Choosing the right business structure is an important factor for business success. There are pros and cons for each type.
Companies are often used as a vehicle by clients to conduct their businesses and have historically speaking, provided a level of protection for the director’s personal assets. The level of protection afforded to Company directors has been known as the “Corporate Veil” and would often protect directors from claims in relation to debts incurred by the Company in the normal course of conducting its trading activities.
From the 1st July 2012, all businesses in the Building & Construction industry, will on a yearly basis need to report to the ATO, the total payments they make to ‘each’ contractor. It’s more red tape from a government that promised to cut red tape for small business. All clients need to ensure that their record keeping systems are able to produce the reports the ATO require.
If you engage or intend to engage subcontractors in your business, then what we have provided below is essential reading, which in most circumstances will require some action to be taken sooner rather than later. There has been more scrutiny from the Tax Office in recent months to make a distinction between ‘independent contractors’ and ‘employees.’ Employers who incorrectly treat a worker as an independent contractor risk facing severe enalties should in fact they be deemed an employee.