The following are changes businesses need to be aware of as we say goodbye to a complicated year!

Many businesses were enrolled with JobKeeper before it ended this year in March. It is important to note that this was taxable income, and it must be reported as such for EOFY.

However, as the JobKeeper payment will be equal to or less than the amount actually paid to the employee, it will be offset by the allowable deduction created by the payment to the employee. This means that the amounts paid to employees will be deductible for a business and they can claim a tax deduction for salaries and wages paid to employees. It is also important to know that the JobKeeper payment is not subject to GST.

Last year many businesses adopted online tools to help streamline and support online business activity. And now that many businesses have made the move and seen the benefits, they are wondering how to make their businesses more efficient in FY22.

The path to better business processes is with technology. There are so many tools on the market to assist with anything from time sheets, stock, contracts, and project management. And better yet many of them integrate with popular accounting systems. For example, Xero App Marketplace is full of platforms that work seamlessly with that accounting system. It is often a good idea to seek guidance from a trusted accountant or bookkeeper to choose which is the best option for you.

Single Touch Payroll begins for closely held payees in businesses on July 1rst 2021. The definition of a closely held employee working in a business is someone directly related to the entity. Closely held payees include family members, directors or shareholders of a company, or beneficiaries of a trust.

For many this would be family member working within a family business. It is a good idea to enroll any family member who were previously exempt from Single Touch Payroll in time for June 30th. If you have questions notify your accountant or bookkeeper. 

The government has created more assistance for small businesses to help them recover from last financial year. It is now possible to claim the small business income tax offset if you are a small business, sole trader or have a share of net small business income from a partnership or trust. For the 2020–21 income year, the small business income tax offset increases to 13% in 2020–21 and to 16% from the 2021–22 income year.

With all the changes and challenges of running a business last year, the time to start talking to your bookkeeping and accounting professional is now. Do not wait or it may be too late to create the best possible outcomes for your business. Be sure to book a chat with us, we love supporting businesses at EOFY!