For those of you who are employers, Friday 26th April is the end date for satisfying your SG super obligation for the March quarter. Late payments will attract interest and penalties. As such, this obligation is an employer’s most important commitment so best not to leave it until the last minute; particularly as payments through some super clearing houses take 5 days or more to clear.
For those who lodge a paper (non-electronic) quarterly BAS or IAS, your March quarter activity statement is due to be lodged by Monday 29th April.
Personal services entities
If you have a personal services entity (you will know if this relates to you as we will have discussed this with you many times over the years), your entity will be required to pay at least 80% of its income to you as salary/wage and remit the tax thereon within this BAS.
Please note that lodgement of an activity statement (even if it is nil statement) and payment are two separate requirements. Late lodgement attracts a minimum non-deductible fine of $210 for every 28 days that a form is lodged late whereas as late payment results in an interest levy. More importantly, BAS’s and SG super which is not reported and remains unpaid after 3 months becomes a personal debt of directors (please refer to the September 2012 edition of Tips and Traps for further details on the Directors Penalty Notices system) – and the ATO are actively issuing DPN notices. That said, the ATO are agreeable to entering into payment arrangements.
And a quick reminder about Single Touch Payroll (STP). STP will be mandatory for all employers from July 2019. You will shortly receive an introductory letter which will be followed by a series or reminders and steps to be implemented before 30th June.
At MRS, we will spend today planning for your success.