Handling payroll tax can be a complex and time-consuming task for businesses. It’s a tax imposed by state governments on wages paid to employees. While it might seem straightforward, numerous factors can influence your payroll tax obligations, making it easy to make mistakes.

Understanding Payroll Tax

Payroll tax is typically calculated as a percentage of wages paid to employees. However, there are numerous exemptions, thresholds, and concessions that can reduce your tax liability. These can vary between states and territories, further complicating the process.

Why You Need a Registered Accountant

A registered accountant can help you navigate the complexities of payroll tax and ensure you comply with all relevant regulations. Here’s how:

1. Accurate Calculations:

Accountants are skilled at calculating payroll tax accurately, taking into account all relevant factors, such as:

• • Wage thresholds
  • Exemptions and concessions
  • Group payroll tax
  • Payroll tax return lodgement deadlines

2. Staying Updated with Changes:

Tax laws are constantly changing. Accountants stay updated on the latest changes and ensure your business is compliant.

3. Minimising Tax Liabilities:

Accountants can help you identify opportunities to minimise your payroll tax liability through strategic planning and effective tax management.

4. Handling Audits:

If your business is audited by the tax office, an accountant can represent you and provide the necessary documentation to support your claims.

5. Timely Lodgement:

Accountants can help you lodge your payroll tax returns on time, avoiding penalties and interest charges.

6. Expert Advice:

Accountants can provide expert advice on payroll tax matters, such as:

• • The best payroll software to use
  • How to handle employee entitlements
  • The impact of changes to employment laws

The Plus 1 Group: Your Trusted Partner

At Plus 1 Group, we understand the complexities of payroll tax and are committed to providing our clients with the highest level of service. Our experienced team of accountants can help you with all aspects of payroll tax, including:

• • Payroll tax calculations
  • Payroll tax return preparation and lodgement
  • Payroll tax audits
  • Payroll tax advice and planning

By choosing Plus 1 Group, you can rest assured that your payroll tax obligations are in good hands. We will work with you to minimise your tax liability, ensure compliance, and provide peace of mind.

Contact us today to discuss your payroll tax needs.

Email or call our friendly team at Plus 1 Group on (03) 5833 3000 and we’d be happy to answer your questions and arrange a no obligation consultation.

As a dedicated team of accountants in Shepparton, Victoria – Plus 1 Group specialise in helping businesses of all sizes understand and manage their finances effectively. Our core focus lies in business accounting. A key part of that is the preparation and analysis of financial statements, which provide invaluable insights into your company’s performance.

Financial statements serve as the cornerstone of business decision-making. They provide a comprehensive overview of your company’s financial health, enabling you to identify areas for improvement and capitalise on opportunities. At Plus 1 Group, we believe that a deep understanding of financial statements is essential for sustainable growth.

The Income Statement: A Snapshot of Profitability

The income statement, often referred to as the profit and loss statement, reveals your company’s profitability over a specific period. It outlines your revenue, expenses, and ultimately, your net income or loss. By analysing your income statement, you can gain valuable insights into your business’s performance, identify cost-saving measures, and assess the effectiveness of your pricing strategies.

The Balance Sheet: A Reflection of Financial Position

The balance sheet offers a snapshot of your company’s financial position at a particular point in time. It presents a detailed breakdown of your assets, liabilities, and equity. By examining your balance sheet, you can assess your company’s liquidity, solvency, and overall financial health. This information is crucial for making informed decisions about investments, financing options, and risk management.

The Cash Flow Statement: Tracking the Movement of Money

The cash flow statement is a vital tool for understanding the flow of cash into and out of your business. It categorises cash flows into three primary activities: operating, investing, and financing. By analysing your cash flow statement, you can identify trends, assess your ability to meet short-term obligations, and identify potential cash flow bottlenecks.

How Plus 1 Group Can Help

At Plus 1 Group, we are committed to providing personalized accounting services tailored to your specific business needs. Our experienced team can assist you with:

• Preparation of financial statements: We will accurately prepare your income statement, balance sheet, and cash flow statement, ensuring compliance with Australian accounting standards.

• Financial analysis: We will analyse your financial statements to provide valuable insights into your business’s performance, identify areas for improvement, and make informed decisions.

• Business advisory services: We offer a range of advisory services, including budgeting, forecasting, and strategic planning.

Contact Us Today

If you’re looking for a trusted business accounting partner in Shepparton, turn to the experts at Plus 1 Group. Our team is dedicated to helping you achieve your financial goals. Email or call our friendly team at Plus 1 Group on (03) 5833 3000 and we’d be happy to answer your questions and arrange a no obligation consultation.

Sometimes it is easy to forget or not consider the TOTAL RETURN from an investment portfolio.

We may focus so much on the:

• Rental income of an investment property
• The dividends from our share portfolio
• The coupon payments from a government bond
• The income being paid on a pension or annuity
• The interest being received on a term deposit

All important as the income invariably provides income for our living expense/lifestyle needs especially for retirees/part time workers or just those solely reliant on returns on their investments to live.

Obviously for investments such as property and shares we also have the growth of the investment occurring (hopefully). Of course at differing times we may need to draw on the growth by selling some of the investments especially with shares (gradual sales) whereas with property not so easy as all or nothing. A subject for another day.

The intention of this article is to focus on the need for A GROWING INCOME STREAM in the main. In other words if I had a say $100,000 share portfolio paying dividends on average of 4% per annum (exclude any tax or franking for this illustration) then that is $4,000 per annum. If the dividend is taken then that’s fine and you still have the $100,000 working for you.

What we do want however is that that dividend/income stream grows as well (or similarly with rental property the rent amount grows each year).

So say for instance the share price grew and the investment was say 5% higher a year later (in addition to the 4% dividend paid) then you would reasonably expect the second year dividend to be $100,000 times 4% times 1.05 being now $4,200.

Extrapolate that out say 10 years then with similar growth (for the purposes of this exercise) then after 10 years you would expect the dividend payment to be $6,205 as below. Based on the assumption that the companies within the portfolio continue to produce profits and distribution of these profits is consistently done.

So dividends were not just $10,000 (10 times $4,000) but $50,312.

The concept is the same for residential investment property where you would ideally want rents to keep pace with inflation or growth in the property – within reason.

All goes well why growth assets in a portfolio are a very important part so as supporting a:

GROWING INCOME STREAM

At Plus1, we are available at any time to discuss issues of this nature, with due regard to your investments or financial planning generally. 

When we invest whether it be in Superannuation Funds or Pension Funds or just Ordinarily Taxed investments clearly we want to have a good return on our monies commensurate with the risk we are taking. CLEAR and SIMPLE.

In our chase for returns we can sometimes miss other side issues that can take the gloss off a good return or enhance a return. Remember that just a small increase in TOTAL RETURN of even 1% per annum can have significant impact on the end result. Simplistically something earning 7% per annum (income and growth) will take a bit over 10 years to double whereas something earning 9% per annum will only take 8 years to double in value.

We would always advocate in principal that your return on investment is the main goal.

The purpose of this article is to highlight a few other considerations when doing some financial planning/investing whether it be a lump sum amount or just regular monthly amounts like for instance our employer superannuation contributions and/or a regular bank account deductions for investment in a “savings plan/portfolio”.

 Other considerations to assist in total return might be:

• Do I want to invest with a view to having some franking credits involved. Can up to 1.50% to 2% return depending on circumstances.

• Is the management fee over 1%. If so it might be a bit rich.

• If the investment is earmarked specifically for retirement then super taxed at maximum of 15% might be best.

• Am I approaching age 60 then Super then eventually Pensions might be the go as all tax free.

• In light of fees charged are Exchange Trade Funds (ETF’s) a better option than Managed Funds.

• I am a retiree – have I maximised my Centrelink – Age Pension with this choice of investments. For those around the mark you will be surprised what can be done. To highlight – every $10,000 less in assets that count means $780 per annum more age pension. A 7.80% return on your money.

• Internet savings accounts far outweigh day to day bank accounts with almost all the same facilities. 5% versus 1% is common.

• I am on a high marginal tax rate can I get the same or similar investment by way of an Investment Bond taxed at lower rates.

• Should I consider a GEARED portfolio for some of my investments to have more monies working for me.

At Plus1, we are available at any time to discuss issues of this nature, with due regard to your investments or financial planning generally.