If your business is about to engage either employees or contractors, your immediately have responsibilities that begin from the day they start with you to the day they stop.
When someone starts working for you, you first need to determine if they are an employee or a contractor.
Employees must complete a tax file number declaration and also possibly a withholding declaration form. These forms must be returned to you, the business and in turn sent to the Australian Taxation Department within a certain period of time. A superannuation standard choice form must also be completed. The correct rate of tax for each individual employee must be set up in your system.
An employee’s details are entered into your accounting system from their Tax file number declaration form and from any exemption or variation forms they may provide. Additions and deductions will also need to be setup.
For example: any extra pay types, penalty rates for weekends, normal overtime, commissions or bonuses. A new employee may also require deductions for student loans or child support. Allowances may be applicable, such as a travel allowance, uniform allowance, tool allowance and so on.
Some of these additions and deductions may or may not be subject to tax and this is when the “in-house’ knowledge and expertise of Tradie Bookkeeping Specialists will stand you in good stead.
There is a huge difference between employee and contractor, particularly in regards to tax. Do you know your stuff? Do you know the necessary tax obligations for each worker classification?
We are experts in the bookkeeping aspect of the Trade Industry. We know the rates, the taxes, the deductions and the penalties. We know how TV set up your payroll system and how to ensure that your employees are being paid correctly.
If your business is based on the Sunshine Coast, then look no further than your local bookkeeping experts, Tradie Bookkeeping Specialists.
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