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Tax Systems And Other Impediments To Business Growth

Business expansion is a big decision and it can create a rippling effect on other factors of your business. It is not just a decision that you make on the spur of the moment. You need to consider several factors before you can decide which direction you are going to take. However, there are several factors that can stop a small business from growing. These factors are part and parcel of having a small business. They only become deterrents when entrepreneurs decide on taking their small business to a higher level. You may need to take a look at these several factors first, before you can decide whether or not you are going to broaden your busines horizons.

Tax systems and other barriers to business growth:

Limited access to the privileges you get from having a small business. 

When you are running a small business, you are also entitled to gain complete access to various small business concessions, which are related to GST, income tax, CGT and many others. Once you decide to expand your business, all of these will be no longer be accessible for you. When taking the road to business expansion, you need to ask yourself if you are willing to gamble or if you are ready to lose access to these concessions. 

Business restructures. 

If you want significant change to happen to your business, you need to welcome restructures. Although it is not going to be an easy decision, being familiar with the effects that restructures make can help you stay on the right track. If you are going to switch to a more effective business structure, you also have to be prepared for the challenges ahead of you. One of the challenges that you are going to face is the CGT liability. 

Payroll Tax  

One of the essentials of putting up a business is making sure that you pay the right tax including payroll taxes. The government is very particular with tax payments and they are keeping their eye on small businesses as well. This is why you need to take it seriously if you really want to run your business smoothly. You subject yourself to a series of problems if you fail to pay on time. You can also get stuck in debt which can take a serious toll on your business. Make sure you keep your payroll taxes in check and avoid falling behind your payment schedule because debts can pile up faster than you know. 

For business owners who decide for an expansion, it is necesary to step out of the business' comfort zone. There are some challenges along the way but once you are familiar with how your business works, everything will fall into place. It does take time before you can reap positive results but it will be all worth your efforts. 

There are other barriers to fulfilling your dreams of expanding your business. Regardless of the obstacles that you will face, you need to keep in mind that you can obtain remarkable results if you are going to consider the risk factors and the steps to take to reduce the possibilities of failing. 

5 Signs Of Fraudulent Payroll Activity

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When it comes to your business’s financial activity, accuracy is important because it is not just a simple number crunching. However, your keen eyes may not always take notice of payroll irregularities and because you’ve put so much trust in the people in charge, you become oblivious to the fact that something is not right. Payroll fraud is very common these days. The execution may be different but it all boils down to the same intention. Being complacent is not an option especially if you run a business with hundreds of employees. You just cannot afford to ignore erroneous entries on payroll reports especially if this has taken place numerous times. When payroll fraud takes place, undoing things can be such a painful and costly process.

5 signs you need to put a stop to fraudulent payroll activity:

1. Sharing logins with other employees.

The information in your payroll system should be treated with confidentiality. This is the reason logins are created. However, if your employees are sharing logins or using obsolete logins, this activity is already questionable. Make sure you have the payroll staff delete your old login to ensure that no one will use it. If you suspect that someone is trying to access your account, request a password reset. 

2. A drastic change in regular masterfile.

It is also a cause for alarm if you see the masterfile changing information at a rapid rate. This should be investigated especially if the essential information such as bank details is not what you hoped for. If changes need to be made, they have to be subject for the manager’s approval.

3. Access to payroll system outside business hours.

When payroll cut-off is getting near, you feel as though there is so little time but so much work to do. If someone in the payroll department attempts out of hours access without your permission, this activity may already be in question. If your payroll staff needs to access the payroll system outside business hours, it needs to be audited.

4. Increasing numbers of casual employees.

There are companies that may often have more casual employees than regular ones and even though this is not a tell-tale sign of fraudulent activity, casual workforce is often used to execute payroll fraud. It is important that you pay more attention to your business if the percentage of casual employees is much higher than your regular employees.

5. Inconsistent payroll reports.

You should also be suspicious if there are some obvious discrepancies in the payroll reports. These reports often undergo extensive scrutiny before they are finalized and if this process is by passed, then you know that something is just not right. It is best to outsource someone that can check the reports on a monthly or quarterly basis. More serious problems such as payroll fraud can be effectively avoided this way.

Payroll fraud needs to be taken seriously as it creates a serious impact on your business. If you suspect an employee engaging in fraudulent activity, do not hesitate to conduct further investigation. Payroll fraud prevention lies in your hands. While you cannot immediately put a lid on the problem, you can prevent more serious issues from happening when you monitor payroll activities closely.

Get Ready For Superstream

In a nutshell, Superstream is an advanced package dedicated to improving everyday superannuation transactions. The process of submitting payments and essential data will be made much easier with the use of this system. Employers with more than 20 employees will have until June 30, 2015 to complete the requirements. However if a company has less than 20 employees, employers need to comply with the requirements until June 30, 2016. To ensure that employers are ready for these changes, it is important that they also prepare contribution data following the electronic format. The employers will adopt the new standard by June 30 2017. All employers that are making super contributions are mandated to use SuperStream.

Reasons for introducing SuperStream:calculator 695084 1280

It is every employer’s obligation to ensure that employee contributions are paid in a consistent and timely manner. With this new system, discrepancies will be prevented because transactions are done electronically.

Before employers can use SuperStream, changes have to be made with their existing system. Otherwise, there will be some issues with adopting SuperStream. The software that employers need to use should be compatible with SuperStream. Employers can either upgrade their payroll software or a third party service provider. For employers with less than 20 employees, another option to consider is using a commercial clearing house. This is also referred to as free Small Business Superannuation. Since this is a completely different approach, employers will also be required to collect additional information for the electronic processing to take place. The essential information includes electronic service address, bank account details, ABN and unique superannuation identifier.

The Significant Benefits of Superstream to Employers and Employees:

Employers

• Employers will only spend less amount of time dealing with fund queries and data issues.
• Employers save on the cost of processing payment and contributions.
• Since SuperStream only uses a single channel, employers can focus on a systematic process for handling employee contribution.
• Superannuation obligations become less stressful because there is a steady flow of information and cash.

Employees

• Employees will have greater peace of mind as payment processing will be less prone to errors.
• Payments and contributions are processed faster than using the old approach.
• Employees will have better retirement savings as the new system is more efficient.
• Employees will be notified once their contributions have been received.

How does SuperStream work?

SuperStream has four elements, which are essential for each transaction being made:

• Payment methods which have been set using standard electronic format.
• Standard message structure designed for sending and receiving notifications or messages when funds have been received.
• Data format so employees receive reports of their contributions.
• Business terms and definitions used for describing employees’ contributions.

While these are considered technical details of SuperStream, employers should not worry about it so long as compliance with the requirements is observed. In the event SuperStream is prevented from sending notifications of contributions due to internet outages or technical issues, the alternative channels will be used such as paper and electronic options. Employers must also include the reasons for using these options. These contributions cannot be rejected if these reasons are indicated.

For employers to get a better grasp of this new system, support tools will also be provided and these include support mailbox, seminars, self-help materials, which can be accessed online and links to the system’s framework.

­ Questions? Give Andrew a call 0450 605 592

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