HAVE YOU REVIEWED YOUR EMPLOYMENT TAXES RECENTLY?

The area of Employment Taxes, both at the Federal and State levels, has been the focus of increased levels of compliance activity over recent months. Employment Taxes include Fringe Benefits Tax, Payroll Tax, Superannuation Guarantee, PAYG Withholding and Workers’ Compensation. Increased data matching capabilities and liaison between the ATO and State Revenue Authorities, have resulted in a greater risk of audit exposure for businesses.

The similarity in these obligations often means that an error in one will have a flow on effect. Also, an unidentified error will tend to be repeated year after year. The penalties and interest for such identified errors could be quite costly. On the other hand, businesses often make errors which result in overpayment of these obligations. Therefore, a detailed Employment Taxes review could result in refunds and savings, as well as a minimisation of exposure.