If this year has gone by in the blink of an eye, we’ve got you covered for all things end of financial year.
And just like that, we’re halfway through another year!
Hopefully, 2022 has flown by because you’re enjoying being back to business as usual and having fun socialising beyond the four walls of your home. If it’s gone by in the blink of an eye because life’s a little crazy, stress less – we’ve got you covered for all things end of financial year.
Here’s what you may need to consider before 30 June:
Get Your Super Deduction (While It’s Hot)
If you wouldn’t mind an extra tax deduction for the 2022 financial year, then it’s time to pay your employees’ outstanding super before 30 June. Super is deductible when paid to the superfund, so get it paid to get the deduction! Xero has advised us that to ensure these payments are received by superfunds before the year is up (and are deductible to you), make sure you’ve processed them by the 14th June 2022.
It’s the perfect time to review your payroll activity for the year and check that all employees are being paid at the correct rates based on their awards/agreements. Checking the balance of wages payable will have you dotting the i’s and crossing the t’s between the pay runs processed and physical payments made to employees. This ensures no one has been over or underpaid – happy days for all 😊 Not sure how to check this or it’s looking a little funky? Let us know!
Depending on your inventory management system the way you go about this may be different to your mate who also runs a business. However, you do it, take down a note of the value of the stock you have on site at 30 June (cost price is usually the go-to valuation method) and keep it safe somewhere for your accountant – we’ll need this when we complete your 2022 tax work.
If you’ve had a tax planning meeting with us, we might’ve agreed on some strategies to help manage your taxes for the year - don’t forget to put those action points into play! Some of them might have to be completed before 30 June, especially if you were looking at purchasing assets, bringing forward invoices or contributing to super.
New Financial Year, who dis?
So, what’s next?! Let’s take a quick look at some of the key dates that are fast approaching.
1st of July
Changes to Super
- The Superannuation Guarantee rate is increasing to 10.5%. This rate applies for any payments that fall on or after 1 July, even if it was earnt for work completed before 30 June.
- From this date, you’re required to pay super on the first dollar earnt by an employee aged 18 or over. Why? They’ve removed that minimum $450 earnings per calendar month eligibility threshold.
- You must pay super for employees under 18 years old if they work over 30 hrs per week (regardless of how much they earn!).
14th of July
Instead of PAYG Payment Summaries to hand out, go through the STP Finalisation process like you did last year. As you may remember from last year, PAYG Payment Summary’s are out, and STP Finalisation is in! Check out our blog from last year on how to get this done, and Xero’s guide here. If you are only paying yourself, a business partner, or a family member, you may be eligible for an extension to 30 September 2022.
21st of July
Monthly BAS/IAS lodgements are due for the June 2022 period.
28th of July
June 2022 Quarter Superannuation to be paid by this date.
Good luck, we’re here to help, & catch you on the flip side for the 2023 FY!