Importance of meeting tax obligations
At the end of the financial year, many businesses struggle to work out what they owe to the tax man and the failure to get the amounts correct can be costly.
The Australian Taxation Office and the Inland Revenue in New Zealand are both involved in numerous businesses every year that make mistakes on their taxes. While many are honest mistakes and easily corrected, businesses can waste countless man hours chasing documents and working amounts out.
This is why it is important to install sufficient payroll software that can produce what is required for compliance.
Files and reports
Payroll software has the ability to produce all the files and reports needed by the relevant tax authorities. As the tax is calculated through the formulae installed, any changes are updated as part of the investment.
The software can manage all the major tax categories including PAYG, GST and FBT automatically. This enables the finance team not to worry about calculating tax rates and superannuation for example.
An advantage of this type of software is the tax rate can be adjusted prior to payment so clients with specific requirements can be covered.
Imagine a business near the end of March is just kicking into gear, without remembering to meet its tax obligations. In this instance, the software will display a warning if a Tax File number is not submitted within 28 days to avoid any penalties.
The payment summaries creating using the software can also be filed with the Australian Taxation Office and different summaries generated depending on whether a individual non-business, voluntary agreement or labour hire is involved.
New Zealand compatible
Recent updates of the payroll software has made it compliant with NZ legislation. Any payments involving PAYE, ACC or student loans in New Zealand can now be made with ease and confidence.