Just as Santa Claus meticulously prepares his list of who's been naughty or nice, businesses should also be careful of the tax implications of their festive cheer.
The business landscape has evolved to be a complex matrix of tax considerations for both employers and employees, with business owners now needing to be aware of their obligations more than ever.
There are a number of employment tax obligations which organisations need to manage including income tax, employee share schemes (ESS) reporting, superannuation and salary sacrificing, fringe benefits tax (FBT) reporting, withholding on termination payments, payroll taxes, and single touch payroll reporting.
Irrespective of whether your business is a start-up regional logistics business with a handful of staff on the books, or an established technology firm with a global footprint and workforce, the approach to employment tax is the same: it requires robust processes and systems that allow the owners to seamlessly meet their obligations while ensuring employees are paid their entitlements.
The cost of attracting and retaining employees, however, is high, with Australia home to some of the most onerous employment tax obligations worldwide.
With the Australian labour market one of the highest performing globally - with low levels of unemployment, a robust economic framework, and strong demand for highly-skilled workers – employment taxes are also subject to frequent legislative changes.
This requires business owners to be across changes when they happen, and ensure their systems reflect any changes. It can result in a number of inadvertent – and unfortunate – issues, including exposure to superannuation guarantee charges and penalties.
With qualified, professional advice, these issues can be mitigated.
How we help clients
HLB Mann Judd has a team of specialist professionals who are skilled in the technical aspects of employment taxes for local and international workforces. We provide our clients – who operate across a number of industries and sectors, and are of varying size and scale – with expert advice that ensures they manage and minimise compliance risk.
At the same time, we provide recommendations for improving internal systems and processes, so the ongoing adherence to tax law is made simpler and more efficient.
As part of our employment tax offering, we offer the following services:
- Review and assess fringe benefits tax (FBT) policies and systems
- Prepare FBT compliance manuals and lodge FBT returns
- Review statutory reporting obligations as it relates to employee share schemes
- Assess pay codes in relation to superannuation, including calculation of any over and underpayments
- Assess and provide a payroll audit
- Review of the payroll function, award compliance, policies and systems
- Global mobility advisory for expatiates and employers
- Advise equity awards employees of any tax implications.