2015-16 FY updates all employers need to know about
Today’s post is about some recent updates for those of you who are employing staff. These updates affect payroll data from 1st July 2015. The updates include:
- Tax tables for the 2015/16 financial year have been updated, including HELP, Trade Support Loan and Student Financial Supplement Scheme. Find more information here.
- For those of you who pay employees weekly & fortnightly, you need to be aware that during the 2015/16 financial year, there will be 53 weeks & 27 fortnights so you will need to adjust payrolls accordingly.
- The good ol’ fashioned “Withholding Declaration” form is no longer required when an employee wishes to increase the amount withheld from their wages. You now only require a request to be made in writing which can include email or on paper. On the other hand, those employees wishing to decrease the amount that is being withheld from their wages can now apply to the ATO electronically by using the PAYG withholding variation application (e-variations) which apart from being easier, will actually reduce the application process time. You can commence the withholding once you obtain approval.
- 66c per kilometre is now a flat rate for car allowances as of the 1st July 2015. Employee’s car allowance withholding will need to be amended to take this into account.
- New TFN declaration forms will no longer include a copy for the employer. You are now able to lodge TFN declarations online via the Business Portal or Standard Business Reporting (SBR). You will need to ensure that your payroll & accounting software are SBR compatible. If for any reason you can’t do this online, you will then need to keep a hard copy of the TFN declaration form for your records.
- Please note: as of September 2015, the TFN declaration forms will no longer be available from the Newsagents. To obtain a hard copy of a TFN declaration, you will have to order from the ATO.