What can businesses do before 30 June to prepare for the end of financial year as well as legally reduce tax liability for 2022 financial year?
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Do you know that from 1 July 2022 onwards super guarantee will apply to employees earning less then $450 per calendar month, provided that they satisfy other eligibility requirements?
This applies to the following (not an exhaustive list):
– under 18 employees,
– contractors,
– full time, part time or casual staff,
– someone receiving a super pension or annuity while working (this includes employees on transition to retirement
– a temporary resident, such as a backpacker
– a company director
– a family member working in your business
In the recent months the phase “wage theft” is popular term, as it was used in news articles about some national companies admitted to underpaying their staff. While news reporters are only reporting those “big” and well-known companies, any employer can potentially be committing some degree of wage theft. It is important that employers run their checks periodically to ensure they are doing the right thing.
What is wage theft
Wage theft is a term
December quarter Super will be due 28 January 2020 – for those who use Xero Auto Super, please submit and approve by 21 January 2020 to allow time to process.
If you need assistance with your payroll – why not give us a call?
If you are aged 65 and above and under 74, you will generally need to meet the work test prior to contributing to superannuation. The work test is basically gainful employment of 40 hours in a consecutive 30 day period. The work test must be met during the financial year and prior to making the contribution.
This often proved unfair where you have retired at the end of the financial year and received termination payments which fell in the next financial year. While there was now cash available to contribute to super, you may not have met the work test due to your retirement the previous financial year.
But here’s the good news – since 1 July 2020 you can access an exemption to the work test.
To be eligible:
- you must be 65 years and over but under 75 years of age
- you met the work test in the previous financial year
- your total super balance (TSB) is less than $300,000 on the 30th of June of the previous financial year
The exemption will apply only once per individual and will be available for the financial year following when the work test was met.
Usual contribution rules and cap limits will still apply to making contributions.
If you are over 65 and interested in making additional contributions to superannuation, talk to us!
Please note due to covid19 this measure has been pushed back and currently may not apply
