Bookkeepers and Business Owners! – Training you – Solving Problems – Or We do your books for you!

Bookkeeping – Train, Troubleshoot or we do the books for you! MYOB Reckon Xero & Set Up


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MYOB Quickbooks – Tax Tables for 2018-2019

MYOB Quickbooks – Tax Tables for 2018-2019

MYOB Quickbooks – Tax Tables for 2018-2019

For an update on this post, see THIS POST

Parliament agreed to the Budget tax cuts last week, meaning new tax rates will apply from 1 July 2018 and will now affect most employees – not just those with student loans as previously expected. As a result, HELP/SSL/TSL and SFSS rates and thresholds  cause every tax table has changed – see the ATO website for more details. 

Tax Rate Table 2018-2019

Does your MYOB/Quickbooks software have out of date tax tables, or you know you need them by experience every year. (To find what you have, click Set Up then General Payroll Information. In about the middle is the table date at the start of that tax year it applies to).

Tax tables become out of date nearly each year as tax rates and/or Medicare and HECS thresholds can be changed by the Tax Office (ATO). MYOB only supply new tax tables via full software annual subscription. You can no-longer buy the  latest tax tables separately as many years ago. Users must upgrade to a new version or take out Cover under their support program to receive the latest tables or ‘pay2myob.bin’ file for earlier versions (MYOB) to keep payroll compliant. (If you want assistance to upgrade to the latest MYOB call Paul 0407 361 596 or email us – info@accountkeepingplus.com.au).

The special MYOB tax file (eg ‘pay2myob.bin’) has been specially formatted so that it disallows any manual edit. Additionally, each version is formatted specially, so you can’t use a tax file formatted for MYOB Version 19 with say Version 16. For the Mac version (AccountEdge®) the tax table file is called “MYOB Tax Tables” or in v9 to 9.6 has a “.tax” extension. Everything else though is the same and all the comments here apply equally to the Mac version.

Note: Third-party tax tables cannot be used in MYOB 2011 onwards – you MUST have subscription or upgrade. Contact the software supplier.

If you have older desktop versions, there is a Solution up to MYOB v19.13 and Account Edge 15.5 Third party updated tax tables available for $82 provide a substitute, have been tested by ourselves and work with many prior versions. They are for those who want to continue to use their current versions of MYOB® without the need to upgrade. Note that there is nothing in your license agreement that prevents you using 3rd party tax tables.

Installation is simple. The tables are supplied with easy to follow video and instructions and instantly downloaded after secure credit card  payment in most instances, or will be emailed to you. You also receive a PDF copy of the applicable Aust Tax Office Weekly Tax Table for you to check the accuracy of the calculations. After-sales email support is available for any installation or setup issues you may encounter. If you would like Account Keeping Plus to install for you, we can do by remote desktop – Teamviewer (free software). For $50+GST. Call or email for instructions.

Note: NO changes are made to the software. The only changes made are to the tax rates in your company data file that the software calls upon to calculate PAYG Withholding in a pay, when processing payroll. The changes made are not permanent and can be reversed by reloading the tax tables from your current tax table file, simply moving a file in the software folder

These third-party tables are available, which Account Keeping Plus have tested in the software and tested against the ATO tables and work perfectly for us and our clients. To get more details and purchase for your MYOB – click the grey box to the right – “Tax Tables” or CLICK HERE.

For the latest tax tables, to download the PDF and keep a copy, or use the Tax Withheld Calculator online all from here ATO Tax Tables – PDF’s.

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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Reckon – Single Touch Payroll – STP – reporting in Reckon One – Accounts Hosted – Accounts 2018

Reckon - Single Touch Payroll – STP - reporting in Reckon One – Accounts Hosted – Accounts 2018

Single Touch Payroll – STP – reporting in Reckon One – Accounts Hosted – Accounts 2018

We wrote the other week all about what Single Touch Payroll (STP) Reporting is about, and what the ATO tells us.

Reckon, an Australian company, is a popular accounting software for many small & medium businesses.

Here is how they are preparing for STP, from the Reckon and STP single touch payroll page

We’re supporting STP across our online and desktop range. The following products will be ATO compliant by 1 July 2018*:

  • Reckon One;
  • Accounts Hosted;
  • Reckon Accounts 2018 version onwards;
  • Payroll Premier 2018/19 version onwards.

We’ve developed a new application called GovConnect STP that will make meeting your STP requirements quick and easy. GovConnect STP acts a gateway to the ATO enabling you to view and lodge your STP reporting no matter what Reckon product you use.

✓ Lodge directly to the ATO
✓ Review before you submit
✓ No extra cost

✓ ATO status messages
✓ Review past submissions
✓ MFA secure

Single Touch Payroll Checklist

Reckon also have a created a checklist with some important questions to consider to help you get prepared for STP. Sign up to download.

And from the Reckon Community, Rav the Community Manager, explains further detail

  1. You won’t need to do anything other than upgrade to the latest version of Reckon Accounts Hosted which will be released in June.
  2. No, we are not using an intermediary to lodge.
  3. There is no additional cost to lodge using SBR through Reckon Accounts Hosted.
  4. Users cannot do testing. All data transmitted through the service will be seen as live data as the ATO does not have a mechanism to set a lodgement as test data (aside from their test service which is for development use only and uses specific data).

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much!

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Or ask a question – Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Business Finance 101 – 6 MORE tips! Plus 4 individual tax tips – End of Financial Year tax tips 2018

Business Finance 101 – 6 MORE! Plus 4 individual tax tips - End of Financial Year tax tips 2018

6 MORE! Plus 4 individual tax tips – End of Financial Year tax tips 2018

BUSINESS

1. Get more from your director’s bonus

If you are expecting a pre-30 June bonus, you may be able to sacrifice your pre-tax salary or bonus into super rather than receive it as cash. As with the deductible contributions, this could reduce tax on your salary or bonus by up to 34%, and will allow you to take advantage of the contribution caps that apply in this financial year. Once your money is invested in super, the tax going in is only 15% and also, tax on earnings is capped at 15%, which may compare favourably to investments held in your own name.

2. Pay quarterly/monthly super

Super Guarantee contributions must be paid before 30 June to qualify for a tax deduction in the 2017/18 financial year. You might consider bringing forward the June quarter contribution payments. We recommend allowing plenty of time for it to reach the super funds (5-14 days some funds require).

3. Bad debt review

Review all your bad debtors. Write-off all those you think are unlikely to pay to enable a tax deduction this year. We recommend recording this in the minutes of the business after ensuring that all reasonable steps have been taken to recover the debt.

4. Prepay expenses

Prepaying certain expenses such as rent, repairs and office supplies before year end can reduce your current year tax liability. If payments are due early next financial year, a pre-payment may entitle you to the tax benefit much earlier.  The rules differ depending on the type of entity so please call your tax agent, if you would like more clarification.

5. Stocktake

Trading stock should be reviewed before 30 June, either by a physical count or from a perpetual stock record system. Small Business Entities can be exempt from conducting a yearly stock take if the value of stock has moved by less than $5,000 during the year. Tax is paid on the value of stock at the end of the financial year so consider selling or disposing of slow moving stock so that it is not included in the count.

6. Franking credits

If you are planning on paying dividends out to shareholders before the end of the year, it is worth reviewing the company’s franking account to ensure that the company has paid sufficient tax to enable the dividends to be fully franked. This may mean paying ahead of scheduled payments in an arrangement with the ATO. For assistance with calculating your franking account balance, please talk to your tax agent.

INDIVIDUALS

A. Get a super top up from the Government

If you earn $35,454 – $51,021 pa, of which at least 10% is from employment or a business, and make a personal after-tax super contribution, you could qualify for a Government co-contribution of up to $500. 

B. Boost your partner’s super and reduce your tax

If you have a spouse who earns less than $10,800 pa, consider making an after-tax super contribution on their behalf, and you could receive a tax offset of up to $540.

C. Use super to manage Capital Gains Tax

If you make a capital gain on the sale of an asset this financial year and earn less than 10% of your income from eligible employment, you may be able to claim a tax deduction for a contribution to superannuation, which could reduce or offset your capital gain. You will need to be eligible to contribute to superannuation (which means you are under the age of 65, or under 75 and meeting the work test), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement).

D. Make tax deductible super contributions

If you earn less than 10% of your income from eligible employment (eg you are self-employed or not employed), you are generally able to claim a tax deduction for personal contributions to superannuation. As with super, you will need to be eligible to contribute to superannuation (which means you are under the age of 65, or under 75 and meeting the work test), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement). If you claim a deduction for it, the contribution you make will be taxed at 15% in your super fund, so your tax saving will be the difference between your marginal rate and 15% – which could be up to 34%.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much!

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Or ask a question – Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Xero – Single Touch Payroll – STP – Reporting in Xero

Xero - Single Touch Payroll – STP - Reporting in Xero

Xero – Single Touch Payroll – STP – Reporting in Xero

We wrote the other week all about what Single Touch Payroll (STP) Reporting is about, and what the ATO tells us.

Xero is a popular accounting software for many small & medium businesses. Here is how they are preparing for STP –

From the Main Xero STP Page

How will Xero roll out STP to employers? 
We’ll roll out STP progressively from 1 July rather than switch everyone on at once. This will allow us to migrate the massive number of Xero Payroll users in the smoothest fashion possible. When it’s time for a payroll administrator to opt in to STP, a banner will appear on the pay-run screen, and you’ll be able to opt in with just a few clicks.

What about the ATO’s 1 July deadline to begin using STP?
The ATO has granted Xero subscribers a deferral until as late as 31 December 2018. We expect to have all Xero users on STP well before that date. Until Xero prompts you to make the switch, you can continue processing payroll as normal and remain fully ATO compliant without any penalty. It’s that simple.

How can employers prove to the ATO that they received a deferral, if asked?
Xero subscribers can use the ATO reference number 49410109.

When will I be prompted to make the switch?
We’ll prioritise roll-out to large employers with more than 20 staff. We’ll let you know when it’s time to make the switch with a banner on the pay-run screen. At that point, you can start filing seamlessly with the ATO.

If I begin using STP after 1 July, do I have to play catch-up in reporting to the ATO?
No. Each STP filing includes all year-to-date payroll information. This feature, along with the ATO deferral, will make for a smooth experience when you begin using STP.

Does STP cost extra in Xero?
No. STP compliance is part of the Xero product offering.

Will STP change my current payroll workflow in Xero?
The aim of our release is to ensure minimal disruption.

From the Xero Blog –

Xero will have a simple set-up process for Single Touch Payroll. During the STP setup, Xero will display your software service ID (SSID).You’ll need to provide it to the ATO in one of two ways. Either: 

Once you’re setup, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office.

Also, due to the filing requirements for STP, you’ll only be able to revert the latest posted pay run for each pay calendar after you’ve opted in.

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE 

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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MYOB – Single Touch Payroll (STP) reporting in MYOB

MYOB - Single Touch Payroll (STP) reporting in MYOB

MYOB – Single Touch Payroll (STP) reporting in MYOB

We wrote last week all about what Single Touch Payroll (STP) Reporting is about, and what the ATO tells us.

MYOB is one of the top selling accounting software for small business, and they are getting ready for STP –

Single Touch Payroll (STP) is an ATO initiative to streamline payroll reporting. You’ll be able to report payroll and super information directly to the ATO when you process a pay run in AccountRight (from either online or desktop company files).

As a result of this change, for the 2018-2019 tax year, you may no longer need to complete payment summaries at the end of the financial year as your employees’ payroll information will be available to them through the government’s online servicemyGov. NOTE – All businesses still prepare the usual Payment Summaries for Year 2017-2018.

MYOB AccountRight 2018 has been updated to help you get ready for STP reporting. We’re working closely with the ATO to ensure you’ll be able to report your payroll data to them from 1 July 2018. There are 2 main steps –

  1. Check employee and Company information;
  2. Connect to the ATO.

For more see here.

MYOB Essentials is preparing to get ready also. Before reporting payroll and super information to the ATO, you need to:

  1. Check that your company information and employee details meet ATO requirements. To do this, you can check your details in MYOB Essentials and view a list of errors that need fixing. Go Here for instructions;
  2. The final step to set up Single Touch Payroll is to connect to the ATO. MYOB are working closely with the ATO to get this bit up and running as soon as we can. MYOB will be in touch when it’s ready.

MYOB AccountRight v19. You can implement Single Touch Payroll by 1 July 2018 by upgrading to the new AccountRight (an AccountRight subscription entitles you to an upgrade). Once you’ve upgraded, take a glimpse at how the new AccountRight will help you set up Single Touch Payroll reporting.

Note: The following features aren’t available yet in the new AccountRight, so if you use any of these in AccountRight v19 you might not be able to upgrade just yet:

  • M-Powered Payments
  • Multi-currency
  • Negative inventory
  • Multi-location stock tracking

If you can’t upgrade, we’ve worked with the ATO and you have been granted a deferral from STP reporting until 31/5/2019. More details about this deferral will be provided soon.

DOWNLOAD a Free “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia