Allowances & STP

Want a small headache, have a read of Allowances.

Want a really big headache? Don’t Read it!

Honestly, nothing is a important as getting the payroll correct, particularly as we move into the realm of continuous reporting of your payroll to the ATO. Fixing mistakes is possible, nobody is perfect and the system allows for that.

But NOT withholding tax from an allowance when you should have. That’s going to cause the employee problems (they have to pay the tax you didn’t take out) and for you, the employer problems (expect an audit), not to mention your employee now hating you!

The ATO is become increasingly in-tolerant to basic mistakes such as this. If you are not sure, ring the accountant, that’s what you pay them for.

There is now an opportunity to get it right with the implementation of Single Touch Payroll, so please spend the time & review all your employee’s allowances & pay rates.