Clubs minutes, March 2011

8. PAYG withholding update

Paul Clark (Micro Enterprises and Individuals (MEI) ATO - Director Employee Obligations) ran through a number of current issues.

• Flood Levy has not been passed yet but tax tables will be modified if it gets passed around late May 2011.
• The law previously allowed employers to refund overpaid withholding to employees if advised by 21 July following the relevant year. That date has been changed to 30 June.
• In relation to reportable employer super contributions (RESC) many employers incorrectly reported compulsory super amounts on their employees' payment summaries last year under. We have implemented strategies to avoid errors in the coming year.
• Some businesses have been incorrectly treating employees as contractors by pressuring to them to get Australian business numbers (ABNs) and then paying them lesser entitlements and no super. This is sometimes associated with migrant workers. One third of contractors are not lodging tax returns (based on statistics from prior audits). Paul recommends using the self-check tool on the ATO website to make sure the people in your businesses are actually contractors and you are not forcing them into loss of entitlements.
• ABN entitlement tool
• Employee/contractor decision tool (to check whether workers are employees or legitimate contractors)
• Guide to contractors.
• Check your payment arrangements.
• Check your super responsibilities because they may apply to contractors as well as your employees.

Sections within Agenda items

• 1. Welcome and approval of previous minutes
• 2. Recoupment of tax losses
• 3. Mutuality and taxable income guide
• 4. Clubs fundraising
• 5. Co-Operative Bulk Handling Federal Court case
• 6. GST issues relating to the clubs sector
• 7. Income tax exemption and sporting clubs guide
• 8. PAYG withholding update
• 9. Charter refresh
• 10. Compliance update
• 11. Around the traps