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Changes to deductions for payments to employees
From 1 July 2019 – NO tax deduction for payments to employees and contractors when PAYG withholding obligations not met.
Important changes to tax legislation will see employers who fail to meet Pay As You Go (PAYG) withholding obligations miss out on tax deductions for payments made to employees and contractors.
This change will affect businesses who:
withhold the correct tax from employee and contractor payments but fail to report the withholding in the appropriate activity statement or fail to lodge the activity statement on time.
Pay employee and fails to withhold tax from their wages
Pay contractors that have not supplied an ABN without withholding tax
Accordingly, it is important that you have valid ABNs for all contractors, you withhold the appropriate amount from employees wages and you lodge activity statements on time and accurately.
Time is running out! Individual tax returns are due for lodgement on 31 October 2018. However we can offer extended due dates if you register with us before 31 October. Our registration process is easy. Either send us your prior tax return or fill in our registration form. After a few quick questions we will then provide a quote. Once you have accepted you are registered and can take advantage of our expert technical knowledge and our extended lodgement dates.