Independent Payroll Services

An alarming number of crimes in Australia have been mapped to stolen identities. When criminals have access to personal information they may pose as the individual without the person having any clue.This explains why we must stay alert and keep our identity documents / information protected.

Personal information and identity documents comprise of one’s full name, current address, date of birth, Tax File Number, details regarding bank account, credit card, birth certificate, passport, driving licence etc.

Thieves maysucceed in collecting critical pieces of information from stolen wallets, social networking websites, scrutinising household rubbish etc. Some might go on to trap you into a fake recruitment process or pose as government or bank officials.

There are scams of all possible sorts including door to door, phishing, phone and online. The baits can be many, here are a few things you can do to keep yourself safe:

1. Never share your personal information publically
2. Donot give out information without understanding the legitimate need
3. Change your passwords and PINs frequently
4. Avoid writing down passwords, PINs on paper
5. Avoid saving your passwords, PINs on mobile with obvious names/ descriptions
6. Connect using secure wireless networks
7. Keep your firewall and security software up to date
8. Accept “friend” requests carefully and cautiously
9. Consider keep your profile settings to “private”, wherever possible
10. Elude making your holiday plans and daily routine public
11. Stay cautious when downloading attachments, clicking on web links
12. Check the person’s credentials whenever asked for critical information
13. When travelling keep your documents protected
14. Stay away from filling out important information on unsecure websites
15. Whenusing the services of a tax agent, check the registration status by visiting Tax Practitioners Board’s website by clicking here

For the financial year 2015 -16, tax rates come into effect from 1^st July. The tax rates largely vary based on the taxableincome and residency status.

The tax rates Australian residents for tax purposes are as follows,this excludes 2% medicare levy as well as the temporary budget repair levy. The latter is applicable at a rate of 2% when the taxable income exceeds $180,000.

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

 

In case of foreign residents, there is no medical levy payment. The temporary budget repair levy applies at 2% when the taxable income is more than $180,000.

 

Taxable income	Tax on this income
0 – $80,000	32.5c for each $1
$80,001 – $180,000	$26,000 plus 37c for each $1 over $80,000
$180,001 and over	$63,000 plus 45c for each $1 over $180,000

 

The Australian Taxation Office (ATO)offers numerous online tools and calculators to assist individual tax payers, including these:

1. Residency Status : this enables knowingone’s liability to pay Australian personal tax on income
2. Simple Tax Calculator : calculates the tax owed simply based on the taxable income without considering other factors (like the medicare levy,high education loan program, medicare levy surcharge, temporary budget repair levy, trade support loan or the student financial supplement scheme liabilities).

For those considering these factors the Comprehensive Tax Calculatorcan be utilised. It estimates tax payable along with the tax refund or debt.

3. Income Tests Calculator: Gives an estimate on adjusted taxable income, rebate income and income  for surcharge purposes

What exactly is salary packaging?

The Australian Taxation Office allows restructuring of one’s income in such a manner that the pre-tax salary can be used as disposable income. This arrangement is known as salary packaging.
It is popular as it results in lesser amount being left as taxable income and therefore brings greater savings.

Is salary packaging popular in Australia?

Yes many individuals are benefiting after getting their salary packaged. Employers are increasingly offering non-cash benefits.

In the traditional scenario the employees get their salary paid after the tax has been deducted. The balance amount may be spent or saved. In this arrangement the expenses happen before the tax is deducted ensuring lesser taxable amount and therefore lesser tax.

One of the most common salary packaging services is salary sacrificing into super. That is the employee can have more than the mandatory (9.5%) amount being saved into the nominated superannuation fund. This would result in higher savings for retired life.

What are the key advantages of salary packaging?

The key advantages of salary packaging are:
1. Higher take home pay
2. Lower taxable income

What all gets covered under salary packaging?

Salary packaging allows employee to choose from a variety of things to do. These include saving it up, buying or managing an item for everyday use or something luxurious.

How does Salary Packaging work?

Salary packaging is also known as salary sacrifice. This is an agreement between the employer and the employee where the former allows non cash benefits for the latter and may be liable for Fringe Benefits Tax on some of these.

What all usually gets packaged?

Variety of things can be salary packaged. The key categories include: Fringe Benefits, Superannuation and Exempt Benefits.

Fringe Benefits can include any of these items:

• Cars
• Car loans
• School fee
• Childcare fee
• Health insurance
• Other personal expenses

It is advantageous as the employee wouldn’t have to pay any taxes or medicare levy on the above mentioned. These do feature on the payment summary. On the other hand benefits like car parking and entertainment are fringe benefits that are non-reportable and do not feature on the payment summary.

Then there are the Exempt benefits where even the employer doesn’t have to pay any tax. These items include:

• Electronic device (portable)
• Computer software
• Briefcases
• Tools of the trade
• Protective clothing

Then there is the salary sacrificing into superannuation. This too doesn’t entail tax liabilities for the employer. Therefore it is beneficial for the employer as well as the employee to divert more pre-tax income towards superannuation.

What is a salary packaging year?

A salary packaging year starts from 1st April till 31st March of next year.

Can salary packaging arrangement be in retrospective?

No, salary packaging arrangement must be in place before the income is earned.

Does Independent Payroll Solutions offer salary packaging services?

Yes, we do. Please feel free to contact IPS via email or phone regarding any further details.

What is Payroll Tax?

Payroll tax is a tax imposed by states and territories in Australia. It applies to the employer or a group when the wages paid or payable to its employees surpasses the threshold amount.

What are the prevailing Payroll Tax rates and thresholds?

The following table elaborates the Payroll tax and thresholds applicable in different Australian states and territories.

Sr. No.	State / Territory	Rate	Threshold (Monthly)	Threshold (Annually)
1.	Australian Capital Territory	6.85%	$154,166.66	$1,850,000
2.	New South Wales	5.45%	$57,534 (28 day month) $61,644 (30 day month) $63,699 (31 day month)	$750,000
3.	Northern Territory	5.50%	$125,000	$1,500,000
4.	Queensland	4.75%	$91,666	$1,100,000
5.	South Australia	4.95%	$50,000	$600,000
6.	Tasmania	6.1%	$95,890 (28 day month) $102,740 (30 day month) $106,164 (31 day month)	$1,250,000
7.	Western Australia	5.5%	$66,667	$800,000

What is PAYG Tax?

PAYG Tax stands for Pay As You Go tax. As the name suggests this system allows individuals and businesses to pay their expected taxes in advance and as instalments.

As and when the employees receive payments during an income year, as per their tax liabilities the employer can withhold the taxes.

Along with the income tax it is used to collect superannuation funds, medicare payments and Higher Education Loan Program repayments.

Is PAYG Tax the same as PAYE Tax?

In the year 2000 this system replaced the Pay As You Earn (PAYE) tax arrangement.

What is PAYG Summary?

At the end of each income year the employer must share with the Australian Taxation Office and the employee details of the annual PAYG withholding payment summary. These details are termed as PAYG Summary.

Please feel free to contact IPS via email or phone regarding any further details about payg services.

What is Pay As You Go (PAYG)?

Pay As You Go or PAYG as it is popularly known as is withholding arrangement in the Australian Taxation system. It allows the contractors, employees and payees to withholding payments and repayments with their payers.
These amounts typically include their superannuation fund, income tax, medicare payments and higher education loan program.

What is the PAYG Summary?

The PAYG summary summarises the payments received by the contractor during the financial year. It includes the gross payment received from the payer, the total tax withheld and the details of the payer (either the ABN i.e. the Australian Business Number or the WPN Withholding Payer Number).

Does IPS payroll PAYG Contractors ?

Yes, we have years of experience in providing accurate, timely and cost effective payroll solutions to PAYG contractors.

Our suite of solutions comprises of:

1. Coverage for workers compensation insurance (WC), Public Indemnity Insurance (PI) and Professional Liability Insurance (PL)

2. Salary Packaging including novated car leasing, salary sacrificing and Living away from home allowance (LAFHA) for increasing savings by minimising the taxable income

3. Signing up of contract through electronic signatures, online processing of timesheets, and receipt of payslips and payment summaries via email .

What are the key services offered by Independent Payroll Solutions in Australia?

Independent Payroll Solutions (IPS) is a payroll company offering suite of services to contractors in Australia. It has a team of professionals who are into timely and accurate processing and management of:

1. online timesheets
2. pays
3. Payslips
4. PAYG summary
5. Superannuation funds
6. Novated leases
7. Living Away from Home Allowance
8. Salary sacrificing
9. Packaging of work related items
10. Insurances (Workers Compensation, Public Liability, Professional Indemnity)

Why should Independent Payroll Solutions be chosen for your payroll needs in Australia?

Independent Payroll Solutions has years of experience and a dedicated team in offering payroll solutions at competitive fee to contractors across the country. It offers salary packaging options to maximize the savings and minimize the taxes.

For any query regarding Payroll Service in Australia please feel free to contact IPS via email or phone.