Business Checklist – 2016

• Reconcile wages and withholding tax to your General Ledger / BAS / Payroll system.

If preparing paper payment summaries and reporting via mail:

• Prepare the PAYG payment summary for each employee by 14 July. (don’t forget to declare reportable FBT/Super on payment summary for employees – if applicable)
• Prepare PAYG payment summary statement
• Send PAYG payment summary statement with ATO copies of payment summaries to the ATO by 14 August (if lodging paper)

Note:  Reportable Super = Total super less SGC (superannuation guarantee charge), and

Reportable Super = Salary sacrificed super (generally)

         If lodging payroll electronically only lodge with the ATO once all reconciliations are complete.

• Do a Stocktake as at 30 June – very important
• Ensure a Current car logbook is available (ie < 5 yrs old & similar annual kilometres) – if in doubt run another motor vehicle logbook (as soon as possible)
• Motor vehicle odometer readings at 30 June to be recorded
• List all Trade Debtors (ie Accounts Receivable) as at 30 June by name & $’s (if not in General Ledger)
• Superannuation at a min 9.5% to be paid (ie received by the fund) on or before 30 June to be deductible in the current year between 1 July & 28 July (inclusive) to be deductible in the following year

All superannuation payments must be paid ON-TIME during the year to ensure deductibility. The maximum superannuation contribution earnings base for 2016 = $50,810 (2017 = $51,620) per qtr with a max SGC required per quarter of $4,826.95 (2017 = $4,903.90). Please note that the maximum SGC amount is measured on a quarterly basis so weekly (and fortnightly) payrolls need to be mindful of this potential overpayment when there are 5 (or 3 if fortnightly) pays in a month during a quarterly period.

• Reconcile Superannuation Liability – by employee to amounts paid (must be min 9.5% for 2016 subject to a max SGC ceiling of $4,826.95 per qtr)
• Bad debts to be written off on or before 30 June (prepare a resolution where appropriate)
• Obsolete Stock to be scrapped & disposed on or before 30 June (refer Stocktake above)
• Obsolete Plant & Equipment to be written off & scrapped on or before 30 June
• Directors Fees or Bonus - resolve to pay prior to year end
• Dividends to be declared, should be resolved to be “paid” or credited prior to year end
• Debit Balance Loan Accounts (Division 7A loan) - ensure all repayments have been made in accordance with the Loan Agreement prior to 30 June via wages, cash or dividend
• Debit Balance Loan Accounts – if new, ensure loan agreement & resolution (Members resolution) is in place on or before 30 June
• BAS - complete for Q4 & if applicable, supply yearly summary (annual GST return) with your tax information. Ensure you include GST for any Employee Contributions on motor vehicles, etc – Lodge & pay by 28 July, or such later date as allowed
• GST Tax Invoices - ensure you have GST compliant tax invoices
• Prepayments – may still be available if you are a small business entity or a non-business taxpayer if period of service covered by the prepayment is < 12 months or ends in the next financial year
• Personal Services income –as a starting point confirm you pass the 80:20 rule & then pass one of the tests to be a small business entity
• Non Commercial Losses (sole trader & partnerships) – confirm you comply with the deductibility tests & the new adjusted taxable income test.
• Building and Construction Annual taxable payments report should be completed and lodged with the ATO by 28 August 2016.

The above is not a complete checklist or advice, but is intended as a guide to provide assistance.

Please contact the office in regard to any specific or detailed requirements.