3 Simple Ways to Make the Australian Tax Office Happy
Taxes can be overwhelming and daunting most of the time, but it is a responsibility that almost everyone would encounter in their lifetime. Whether you are an individual, an employee or an entrepreneur, you have taxes to pay in one way or another.
No business owner wants to have any problem when it comes to taxes. Aside from the stress it gives, it is also a financial burden. To ensure that you avoid getting any audits or penalties, one of your goals should include keeping the ATO (Australian Tax Office) happy. When they are happy, you have fewer things to worry about.
What Is ATO?
ATO is the Australian Government's central revenue collection agency. Collecting revenues is one of their main tasks. They are also responsible for effectively managing and shaping the tax and superannuation system. If you are a business owner, you would need to deal with them regularly.
Fortunately, keeping them happy is simple. In fact, it can be done in three simple steps. These are what you should do to make sure that everything goes smoothly between you and the ATO.
Step 1: Know and Meet Your Deadlines
Make ATO happy by knowing your requirements and when you should submit them. It shows how responsible you are as an entrepreneur and how you do your best to meet your obligations. Submitting deadlines on time would also make work smoother for both parties.
Some business owners neglect their lodgement deadlines because they do not yet have the money to pay their tax returns. While others completely forget about their deadlines. If your reason is the former, know that the most important thing is to submit your lodgement on time, regardless of whether you have the money or not. If your concern is the latter, stay informed about the key lodgment and payment dates and target submitting before the due date.
Step 2: Pay Your Dues on Time
If you are not financially able to pay your dues yet, do not consider hiding or avoiding ATO. Instead, go to them and seek their help. They can provide you with a payment arrangement that could help you pay your debt sooner.
Hiding would never make your debt go away. It would make the debt grow over time. Aside from the pile of debt to pay, your reputation is also at stake. So, face the problem and let ATO help you find the best solution.
Step 3: Pay Your Employees' Superannuation on Time
Another thing you should not forget is paying your employees' superannuation. As a company, you are responsible for paying the eligible employees' contribution. Superannuations are paid quarterly. Make sure to take note of the payment schedule and do your part promptly. Missing any of the deadlines would result in a penalty charge through a Superannuation Guarantee Charge (SGC) Statement, which can also be expensive.
Keeping ATO happy is simple. If you noticed in the three steps enumerated in this article, everything has to do with meeting deadlines. Do your business well, but never forget about your responsibilities. Take note of these three things and follow accordingly. That would help both your business and the ATO have a smooth working relationship.
Having an accountant can make things easier for you. They would prepare all your paperwork and know when each is needed for submission. Should you need a small business accountant in the Gold Coast, we are here to help. New Wave Accounting is dedicated to assisting businesses in minimising their tax and maximising their profit. Call us today to learn more about our service.