HarrisonAssociates in Pacific Pines | Financial service

HarrisonAssociates

Locality: Pacific Pines

Phone: +61 424 850 156

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• Tax preparation service
• Accountant
• Financial service

14.01.2022 We welcome the Federal Government’s $130 billion wage subsidy scheme, which includes a $1,500 per fortnight payment for up to 6 million Australians, including those who’ve been stood down in the last few weeks. This announcement is a sigh of relief for businesses, particularly sole traders who hadn’t received any mention in previous stimulus announcements. The wage subsidy scheme means that eligible employers - those with turnovers of under $1 billion that have taken a 30% hi...t and turnovers of over $1 billion that have taken a 50% hit - will receive a $1,500 per fortnight ‘job keeper payment’. This must be paid (before tax) to each employee as at 1 March who has either been stood down since that date or will be kept on over the next six months. The extension of this measure to sole traders who have an ABN will be a huge relief. At present, few of the stimulus measures have helped this group specifically. This package will provide them with some hope of coming out the other side of this crisis. For an employee stood down entirely, the payment will be worth $1,308 per fortnight after tax ($1,500 less $192 PAYG withholding; assuming claim of the tax-free threshold and no HECS debt etc) This payment will be a challenge to manage for payroll systems, particularly where there is no requirement to pay SGC in relation to part of the payment to the employee and will relate to payroll from 30 March 2020. The subsidy to the employer will start from 1 May 2020. Three examples of this: 1. An employee currently earning $2,000 per fortnight and kept in that job by the employer. The employer gets the payment of $1,500 per fortnight and uses it to subsidise the employee’s wage. However, SGC must be paid on the full $2,000 paid to the employee. 2. An employee currently earning $1,000 per fortnight and kept in that job by the employer. The employer gets the payment of $1,500 per fortnight and must pass it on in full (ie the employee receives $1,500). SGC must continue to be paid on $1,000, but not on the additional $500. 3. An employee currently stood down earning $nil per fortnight. The employer gets the payment of $1,500 per fortnight and must pass it on in full (ie the employee receives $1,500). No SGC need be paid.

14.01.2022 We welcome the Federal Governments $130 billion wage subsidy scheme, which includes a $1,500 per fortnight payment for up to 6 million Australians, including those whove been stood down in the last few weeks. This announcement is a sigh of relief for businesses, particularly sole traders who hadnt received any mention in previous stimulus announcements. The wage subsidy scheme means that eligible employers - those with turnovers of under $1 billion that have taken a 30% hi...t and turnovers of over $1 billion that have taken a 50% hit - will receive a $1,500 per fortnight job keeper payment. This must be paid (before tax) to each employee as at 1 March who has either been stood down since that date or will be kept on over the next six months. The extension of this measure to sole traders who have an ABN will be a huge relief. At present, few of the stimulus measures have helped this group specifically. This package will provide them with some hope of coming out the other side of this crisis. For an employee stood down entirely, the payment will be worth $1,308 per fortnight after tax ($1,500 less $192 PAYG withholding; assuming claim of the tax-free threshold and no HECS debt etc) This payment will be a challenge to manage for payroll systems, particularly where there is no requirement to pay SGC in relation to part of the payment to the employee and will relate to payroll from 30 March 2020. The subsidy to the employer will start from 1 May 2020. Three examples of this: 1. An employee currently earning $2,000 per fortnight and kept in that job by the employer. The employer gets the payment of $1,500 per fortnight and uses it to subsidise the employees wage. However, SGC must be paid on the full $2,000 paid to the employee. 2. An employee currently earning $1,000 per fortnight and kept in that job by the employer. The employer gets the payment of $1,500 per fortnight and must pass it on in full (ie the employee receives $1,500). SGC must continue to be paid on $1,000, but not on the additional $500. 3. An employee currently stood down earning $nil per fortnight. The employer gets the payment of $1,500 per fortnight and must pass it on in full (ie the employee receives $1,500). No SGC need be paid.

09.01.2022 Here's a useful article from Kochie's Business Builders that some of you might like. I believe it is a good to prepare for taxes throughout the year. What's your favourite tax tip from the list? I think No#10 should be higher up the list.