Running a small to medium business is a daunting job as you are juggling a range of responsibilities. Sometimes you may overlook certain obligations while trying to operate and grow your business.

9 Payments Every Business Owner Must Never Overlook

1. GST
2. PAYG Withholding
3. PAYG Installment
4. Income Tax
5. Superannuation
6. Workers Compensation Insurance
7. Other Insurances
8. Payroll Taxes
9. Bills

Let's deep dive into the payments to keep you in check and avoid penalties:

1. ATO obligations

The most important of them all is your ATO obligations. As a business owner, you are liable to comply with various provisions of ATO. Here are the ones that you must not miss:

• Understanding GST for Australian Small Businesses
  If your business has a turnover of $75,000 or more, you must register for GST. Once you are GST-registered, you must lodge your Business Activity Statement (BAS) periodically. If your BAS lodgment cycle is quarterly, the following are the due dates:
  • July, August, September: 28^th October
  • October, November, 31 December: 28^th February
  • January, February, March: 28^th April
  • April, May, June: 30 June: 28^th July
• PAYG Withholding obligation of Australian Business Owners
  Besides GST, you are also obligated to withhold taxes for certain payments made to employees and directors. Additionally, if payments are made to suppliers who have not quoted their ABN, you need to withhold specific amounts and report them in the PAYG section of your BAS.
• PAYG Installment to be paid by Australian Small Businesses
  Once your turnover reaches a certain threshold, ATO will automatically enter you into the PAYG installment system, and you will have to pay your income tax in installments. Hence, it’s better to plan your income tax ahead to avoid any cash flow problems. The due date is the same as that for BAS.
• Income Tax obligation that Australian business owners must know
  If you are lodging your income tax return, you need to lodge it by 31 October. If it results in tax liability, you must pay by 21 November. However, if you engage a tax agent, the due date can exceed 31 October as they have their own specific schedule. To engage the services of a tax agent, you need to have engaged with them before 31 October.

2. Meeting Superannuation deadlines

The applicable superannuation rate, effective 1 July 2024, is 11.5%. Employers are obligated to pay 11.5% of employees' ordinary time earnings. Payments need to be made at least four times a year within the stated deadline to avoid a super guarantee charge. The payment deadlines are:

• 1 July – 30 September: 28^th October
• 1 October – 31 December: 28^th January
• 1 January – 31 March: 28^th April
• 1 April – 30 June: 28^th July

 

3. Workers Compensation Insurance to protect small business employees

No matter the business size, you must have worker compensation insurance if you have one or more employees. Insurance protects your employees from any hardship they might face due to illness or accident. If you do not have adequate workers' compensation insurance, you may be subject to a ‘double avoided penalty’ and/or jail time. The ‘double avoided penalty’ will require you to pay a fine that is double the insurance premium amount. This will put significant pressure on your finances. So, be vigilant about the renewal date of the insurance.

4. Other Insurances to protect Australian Businesses

To protect the business's assets and financial well-being, you should obtain other insurance, such as Professional Indemnity Insurance, Vehicle Insurance, etc. This will protect against any sudden events that might result in hefty business losses. Be mindful about their due date to ensure adequate insurance coverage.

5. Payroll Taxes every Australian employer must know

Payroll tax is a self-assessed tax that you must pay if your total taxable wages exceed the threshold set by your state or territory. Rates and thresholds vary by region, and the tax is managed by local revenue offices. If your business exceeds the threshold, you must register, calculate, and lodge payroll tax regularly. Monthly returns are due on the 7^th of the following month. The deadline for annual returns is 21 July.

6. Bills and More Bills: Plight of Small Businesses

To keep the business running, you need to pay your bills. This includes rent, utilities, subscriptions, suppliers’ invoices, etc. Staying on top of these recurring payments ensures your business can operate without disruptions.

We know how busy you might be growing your business, and financial obligations may not be a priority on your list. You could always use software like Xero and QuickBooks to set reminders and schedule payments. An alternative could be to hire a professional accountant to handle all these small yet important tasks.

Looking for expert guidance? Discover how our expertise can benefit you—book a consultation for tailored solutions today! Contact us at +61 410 7770 802 or email admin@byogroup.com.au