Remote Bookkeeping and OnLine Accounting Services Australia

In Australia, employers are required to report and pay superannuation contributions periodically along with other related tax requirements. Compliance with the super rules is necessary in order to avoid adverse tax consequences. The Australian Tax Office is charged with the administration of the tax system and policy changes which are occasionally issued to enhance or improve the system. Taxpayers are encouraged to stay informed or use an updated recording system such as Quick Books hosted by Reckon online bookkeeping services.

Superannuation mistakes employers make

The rules surrounding the reporting and payment of superannuation can be confusing to an employer, leading to common mistakes such as:

• payment of insufficient super contributions
• failure to meet quarterly cut-off dates
• non payment of super in appropriate cases involving contractors
• failure to maintain accurate records
• failure to pass an employee’s tax file number on to their super fund

Calculating, maintaining records and preparing activity statements for superannuation can be a breeze when assisted by a accountant, bookkeeper or BAS agent who uses a reliable system such as Quick Books hosted by Reckon online bookkeeping services.

Who is covered by superannuation

As a rule, an employee is eligible for membership in a super fund if the employee:

• is between the ages of 18 and 69 years old;
• earns at least $450 (before tax) every month; and
• works for the employer on a full-time, part-time or casual basis

The employer must contribute at least 9% of the employee’s ordinary time earnings to the super fund before the quarterly cut-off dates. Some contractors are also considered employees under the super guarantee law, and for whom employers must also pay super contributions.

Changes in Tax File Numbers

Starting July 1, 2011, trustees of superannuation funds are permitted to use Tax File Numbers (TFNs) as the primary identifier of fund members. Previously, the trustee of a super fund was allowed to use TFNs to locate multiple member accounts only as a last resort, when other methods for tracing these accounts were insufficient. This made it difficult to consolidate accounts between and across multiple superannuation funds.

Maintaining good records of superannuation compliance and other tax obligations can be daunting. Errors in calculations and delays in lodging statements can be costly to the employer. Business owners are able to minimise errors in reporting and paying super contributions when they delegate these activities to an online bookkeeper, remote accountant or BAS agent who uses Quick Books hosted by Reckon online bookkeeping services.