Meeting your obligations
Your business must continue to meet its obligations until it is either closed or sold to the new owners.
If you are an employer, it is important for you to consider finalising important tax issues for your workers, even though the business is no longer trading or has been sold. These issues include:
- fringe benefits tax (FBT)
- pay as you go (PAYG)
- superannuation
- eligible termination payments
- Single Touch Payroll (STP) reporting.
Find out more about when you're no longer hiring workers. Your obligations may vary, depending on whether the worker is an employee or independent contractor.
We have tax tables and information on the taxation of termination payments to help work out your obligations.
Be aware that director penalties can apply for unpaid superannuation, PAYG withholding and GST liabilities the business has incurred, even if they are not yet due when you close the business.
Paying superannuation
You are still required to pay the minimum amount of superannuation (SG) for your employees (and some contractors) to the correct fund by the due date in order to avoid being liable to pay a super guarantee charge (SGC). The SG contribution will be based on ordinary time earnings for the quarter.
If you can't pay the full SG contributions, you should:
- pay as much as you can to the employee's and some contractor's funds by the due date so as to reduce the SGC
- lodge the SGC statement within 28 days after the quarterly SG is due
- pay the SGC to us.
If you are having trouble paying the SGC, we can work with you to set up a payment arrangement.
For more information, see Super for employers.
Single Touch Payroll (STP) reporting
If an employee’s employment has ended, make sure you report their cessation (end) date in your STP report.
If you have already paid them their final pay, you can still tell us this information by submitting an update event. You don’t need to wait until the end of the financial year to finalise your STP data. Finalising is an important step as it enables individuals to lodge their income tax return at the end of the year.
If you don't report through STP you will need to lodge a PAYG payment summary annual report.
Effect of changing your business structure on STP reporting
If your business structure changes, the ABN and/or branch that you include in STP reporting may change.
If this occurs, you must:
- finalise your STP reporting under the ABN and/or branch you have been using for your STP reporting
- commence reporting your employee's year to date amounts from zero under the new ABN and/or branch.
It's important to finalise your STP reporting under the ABN and/or branch you have been using before cancelling your ABN and other registrations.
Your superannuation
If you are planning for retirement, are semi-retired or just looking at your options, the superannuation system may influence what you do with the proceeds from the sale of your business.
The withdrawing your super and paying tax measure allows individuals to access their super benefits, once they reach their preservation age, without having to retire or leave their jobs.
For more information, see Super.