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  • Deductions for employers

    28 February 2018

    Tax time is only a few months away. As an employer, here are some things you can get organised now so you don’t miss out on claiming what you’re entitled to.

    Deductions for salary and wages

    If you’re in business as a:

    • company or trust - you can generally claim a deduction for any salary and wages paid to yourself or other employees
    • partnership or sole trader - you can only claim the salary or wages you pay an employee, not what you pay to yourself.

    Deductions for super contributions

    Super contributions can be claimed as a deduction too, providing they were paid to a complying super fund or retirement saving account for your employees. To get this right, you’ll need to know the amount your employees earn for their ordinary hour of work called 'ordinary time earnings'.

    Ordinary time earnings include commissions, shift loadings and allowances, but not overtime payments.

    By getting your records ready early, making payments on time and reporting accurately will mean this year will be done and dusted in no time.

    Remember, registered tax agents and BAS agents can help you with tax advice.

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