There are so many company obligations, it can be mind boggling. The sheer thought of growing your own business and employing staff keeps you awake at night. No longer is it just you, but now you are responsible to employees, their payroll, management, superannuation and their workplace health and safety. Not to mention BAS, PAYG obligations, ASIC, but the idea is not to scare you away from as growing your own business, as this can be very challenging but equally rewarding.
It just means that you need to be on your toes, be aware of your responsibilities, use tools like your task list in Outlook, setup reminders of dues dates. Put together a new employee checklist so you know you have all the necessary paperwork in order. Or if you don’t have the time to do this, hire someone to do this for you. Consider out sourcing payroll or look at a bookkeeper who can remind you of due dates and keep your figures in order.
I will briefly cover off the tax man and the company obligations surrounding BAS, FBT & PAYG.
GST – Goods & Services Tax
What is it – Pay 1/11th of all income in GST to ATO, claim back 1/11th from all expense in GST, the difference in these amounts determines if you will have to pay or receive a refund on your BAS.
How – As part of your BAS
When – Monthly, Quarterly
PAYGW – Pay As You Go Withholding Tax
What is it – Amount of tax from your wages that you pay to the ATO
How – As part of your BAS
When – Monthly, Quarterly
BAS lodgement dates can be Monthly, Quarterly or Annually depending on the size of your business.
Monthly BAS:
Due by the 21st of the month
Quarterly BAS due dates:
1st Quarter: 28 October
2nd Quarter: 28 February
3rd Quarter: 28 April
4th Quarter: 28 July
FBT – Fringe Benefits Tax
What is it – Amount of Tax you pay on the private expenses paid by your company, i.e private usage of your company vehicle. This is a separate payment from your income tax.
If you had to pay FBT of $3,000 or more in the previous year, you need to pay the tax quarterly by instalments with your activity statement.
How – Accountant
When – Annually 1st April to the 31st March
Company Income Tax – Tax on Profit – 30%
PAYGI – Pay As You Go Income Tax Instalments
What is it – Amount of tax you pre pay based on prior year tax payable, the ATO may send out notification where you will have to pay instalments.
How – Accountant
When – Annually – until May following year
ASIC – Australian Securities and Investment Commission
What is it – A body that regulates companies
How – Need to identify them if you change address or change in directorship
When – Annually you pay a registration fee of $212.00 NO GST
Please keep in mind that this is purely a general overview/ guide, and everyones circumstances are different. Speak to your accountant or financial advisor in relation to your individual circumstances.
