Payroll Best Practice Guide for Employers

Payroll Best Practice Guide for Employers: Key Tax Due Dates and Tips for 2024 

For business owners, maintaining compliance with payroll obligations is crucial to ensuring smooth operations and avoiding penalties. Payroll management is not just about paying your employees; it involves many tax obligations and deadlines that must be met throughout the financial year. To help you stay on top of the upcoming important dates and obligations, we’ve compiled a summary of the upcoming key payroll tax due dates and some tips on best practices.  

Key Tax Due Dates for Employers 

1. Single Touch Payroll (STP) Finalisation

• Due Date: Employers are required to complete their STP finalisation by 14 July 2024.
• Details: STP is an ATO initiative that requires businesses to report employees’ payroll information, including wages, PAYG withholding, and superannuation, directly to the ATO on each payday. At the end of the financial year, employers are required to lodge a Finalisation event to confirm that the year has been completed. This data will be transited to employees’ myGov to enable the preparation of their tax affairs.  
• Tip: Double-check the Gross Wages and PAYG withholding amounts and ensure they can be reconciled to those amounts reported on your Business Activity Statement (BAS) during the year to ensure accuracy.  

2. PAYG Withholding Payment Summary Annual Reports

• Due Date: For payments not reported and finalised through STP, you are required to complete a PAYG Withholding Payment Summary Annual Report by 14 August 2024.
• Details: This report includes summaries of all PAYG withholdings for the year, including those related to Personal Service Income (PSI). PSI is income from your skills, knowledge, expertise, or efforts.  

• Tip: It’s critical to ensure that these withholdings are accurately calculated to ensure the obligations are satisfied.  

3. Victorian Payroll Tax Reconciliation for 2023-24

• Due Dates:  All electronic annual reconciliations are now available. In Victorian, the Payroll Tax Reconciliation must be completed and lodged with any amount owing by 22 July 2024. 

• Details: The annual payroll tax reconciliation is a crucial compliance requirement for businesses operating in Victoria. This process involves reconciling payroll tax liabilities and ensuring that outstanding amounts are settled by the due date.  
• Tip: If you also employ staff in another state, it is important to take it into calculation.  

4. Remember to include Reportable Fringe Benefits Tax (FBT) and Reportable Superannuation on the above 

• While some payments and benefits are not taxable, they are required to be reported on the employee’s payment summary as well as the employer’s payroll tax annual reconciliation and Workcover declaration. These can include, for example, car benefits, salary sacrifice (super). Please also note that while electric cars are exempted for FBT, the benefits are reportable the same way as a non-electric car.  

5. WorkCover Declaration 

• Don’t forget the Remuneration Declaration for Workcover purposes.
• Different insurers have slightly different due dates, which are generally around October. Many providers provide a small discount if you choose the early payment option.   
• Tip: you will be asked to estimate the new year’s remuneration, which will be used to calculate the premium instalments for the new year. 

6. Superannuation

• Tip: Superannuation contribution is not tax deductible until paid. Therefore, if cashflow is not an issue, many employers choose to pay the June’s super contribution before 30 June 2024, instead of the due date 28 July 2024, so the tax deduction can be claimed in the 2024 income year.  

How Morrows Can Help 

At Morrows, we understand the complexities of payroll management and are here to assist you with payroll and tax obligations. Our team of experienced advisors can provide tailored advice to help you navigate the intricate payroll requirements and ensure your business remains compliant. 

If you need more information or assistance with your payroll processes, please contact your tax and business advisor at Morrows. We will be more than happy to assist.