Tax tip – Set your PAYGW tax and super aside

Paying your employee’s super on time, in full, is essential. It is amazing how many businesses we see that don’t pay super on time or struggle to meet their quarterly PAYGW obligations.

So, what can you do to avoid the cash flow nightmare? Each week or fortnight when you process the payroll you should be putting the super & tax you owe for you employees aside. This is not your money to spend.

We suggest setting up a second bank account called ‘tax & super’ account and transferring the super and PAYGW to this account when you process the payroll. Alternatively, you can just use the auto super function in your accounting software, such as Xero, and pay it at the same time you process your payroll.

Paying your super on time ensures not only is it tax deductible but that you are meeting your statutory obligations. There are harsh penalties for not paying your super on time!

We are a small business accounting service located on the beautiful Sunshine Coast and would appreciate the opportunity to help you, your friends, family and colleagues. Contact us on 07 5451 1118 for an obligation-free confidential discussions today.