As a business owner, it's important that you pay all of your employees accurately and on time. Under Pay as you go (PAYG) withholding rules, you are obligated to collect tax payments from your employees and submit your records to the Australian Taxation Office (ATO). If you are starting a business, you can register for PAYG withholding through the Australian Government's Business Portal.
Keep Your Payment Records
It's important to keep accurate PAYG records so the Australian Taxation Office can ensure that you have paid the right amount of tax, your employees are receiving the pay they're entitled to, and you are complying with government legislation. You must keep your records for a minimum of five tax years, even if you cease trading. Failure to keep accurate records for the required amount of time could result in penalties. You may store your PAYG records in electronic format, providing the scans are clear and derived from original copies. The ATO must also be able to access these documents at any time.
Pay Your Employees On Time
It's your obligation to pay your employees on time. As a business owner, salary may be a small aspect of your budget; however, to an employee, it's their livelihood. Employees talk and whether or not they've signed an non disclosure agreement or contract stipulating that they won't disclose their finances, word of immoral business practices will inevitably find their way out and tarnish your name if you fail to pay. PAYG management services will prevent this issue from occurring. A dedicated payroll accountant will ensure your employees are paid on the right date and without fail, allowing you to focus on other aspects of your business.
Pay the Correct Amount
When employees read their payslip each month, they will expect to see the calculation process from gross pay to their final net pay. This includes all deductions, bonuses and withholdings. Incorrect payment can have negative effects on employee morale and leave them less enthused to work. If you've promised a bonus or any other perk, make sure your accountants are aware of it before PAYG withholdings are processed.
Good PAYG management is both a legal and moral obligation. If you fail to take the necessary steps, your business will suffer. Payroll services and professional accountants can help to ensure that all of the calculations used to determine and employees' net pay are clearly indicated on their wage slip. This allows them to figure out exactly how much they've been paid, what's been deducted and where the money has come from.