Effective from 1 July 2019, Employers are required to lodge all PAYG reports and make all PAYG related payments on time. Failure to comply with this requirement will mean that the Employer will not be entitled to a tax deduction for the gross payments made to its employees’.
This new law is quite strict and brings with it harsh penalties in that all payments made to employees will be determined non-deductible, not just the unpaid or unreported component.
Examples of non-compliance will include nil lodgements of Activity Statements as well as any non-payments of PAYG withholding.
Payments that will be targeted include employee wages & salaries, directors’ fees as well as payments under a labour hire arrangement or for services where the payee has not quoted an ABN.
This new legislation entwined with the use of Single Touch Payroll by employers marks a new age for keeping employers compliant with their obligations to employees.
For assistance in reviewing your PAYG withholding reporting and payment processes or to find out more information, please contact your Davidsons team member or one of our Cloud Accounting Consultants at firstname.lastname@example.org or on 03 52216399.
Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article