Due to the COVID-19 pandemic, which occurred around this time last year, auditors are struggling with a greatly changed operating environment. As this month marks the anniversary of mass change for the accounting industry, it is also a time to ponder how accountants have been busy helping clients cope with the numerous incentives and incentive measures introduced by governments to businesses during the Support pandemic. Let’s take a look at what’s happening.
Most COVID-19 stimulus payments like JobKeeper are coming to an end, despite the JobMaker Hiring Credit will continue to be available to any Eligible Additional Employee between the ages of 16 and 35 that companies hire by October 6, 2021.
It is worth noting that the corporate tax rate like for small and medium-sized companies to 26 percent for the income year 2020/21, with the rate falling further to 25 percent in the next year. It’s important to note that this isn’t limited to small businesses, but rather to businesses under $ 50 million that don’t have a high percentage of passive income. Tax rates are also falling for sole proprietorships.
From April 1 this year, small to medium-sized businesses will also be eligible for FBT exemptions for parking benefits and work-related portable electronic devices. These FBT licenses are also available to companies between $ 10 million and up to $ 50 million in revenue.
In addition, the STP reporting exemption for small employers with close-knit payees ends on June 30, 2021. Close-knit payees include family members of a family business, directors of a company, and shareholders or beneficiaries. The payments to these groups recognized by the exemption tended to be outside the normal billing process.
For example, instead of paying employees who are family members a salary when it is appropriate for them, or intermittently paying remuneration to their close-knit payees, many family businesses keep cash in the company.
“This change is important to organizations that are used to determining payees’ salaries, wages, and fees after the end of the year,” said Robyn Jacobson, CTA, senior advocate for the Tax Institute.
The generous tax breaks that have been introduced for small businesses in recent years are also changing. For example the $ 150,000 instant Depreciation of assets available for small business purchases of corporate assets with annual sales of less than $ 10 million that have been rolled back to $ 1,000 as of January 1, 2021, although this is not practical due to the current full burden of the write-off by July 1, 2022 Will have an impact.
As this shows, there are many accountants and moving parts accountants working on behalf of their clients in the run-up to June 30th.
Learn about the changing tax landscape with Robyn Jacobson
Robyn Jacobson has been a professional tax trainer for more than 20 years and has been a senior advocate of the Tax Institute since May 2020. He is a well respected commentator and thought leader on the Australian tax system. She advocates the Government and the Australian Income Tax Office on behalf of the Institute’s small business owners.
Jacobson is one of the distinguished panelists of the upcoming Pro Power Hour, a new series of virtual webinars brought to you by Intuit QuickBooks. These 60 minute live broadcasts provide accountants with access to the latest industry news, product updates and demonstrations.
Accountants have never played a more important role in supporting their small business customers. This is why it is so important to keep up to date with the latest trends and changes in the industry. This series of events updates accountants’ understanding of the current trading environment.
“I am very excited to be working with Intuit QuickBooks to share my expertise in a digestible, educational format. Since so many accountants and bookkeepers have multiple roles to play for their small business clients, having access to free educational resources like these will add great value. “Says Robyn.
The webinar series also coincides with the introduction of new benefits for Pro Advisors attending the QuickBooks ProAdvisor program. The initiative gives members access to QuickBooks Tax and Advanced Payroll features, as well as discounted access to Karbon implementation and support services. More details on these new rewards will be announced at the launch of the Pro Power Hour series on March 23rd at 5:00 p.m. CET.
With QuickBooks Tax from LodgeiT, you stay fit for tax purposes
Great accounting and tax software makes all the difference for accountants at the end of the fiscal year. QuickBooks tax powered by LodgeiT offers an easy-to-navigate, end-to-end tax management solution that allows you to manage everything from creating and reviewing customer accounts to filing tax returns.
QuickBooks Tax consists of two modules. The QuickBooks Online Accountant software is a central portal that allows you to prepare and review your customers’ books from one place. After you have completed the customer accounts, send their details to LodgeiT, which then enables secure, fast and accurate tax preparation and filing.
The system includes features that allow you to add attachments and notes to provide a paper path to aid in making decisions about clients’ tax and accounting responsibilities. It also offers unlimited electronic signatures to expedite customer approval for their accounts. A layered approach to security protects your customers’ data hosted on Amazon servers for businesses.
For more information on LodgeiT’s QuickBooks Tax, the new benefits of the ProAdvisor program, and our suite of smarter business tools, visit the QuickBooks Pro Power Hour.
Register now to get fit for tax purposes with Robyn Jacobson and to familiarize yourself with our panel of experts. You will also have the opportunity to win tickets to the Australian Accounting Awards 2021 by registering for this event. *
* Terms and conditions apply
Get a head start on tax planning in 2021
Last updated: March 11, 2021 Published: March 9, 2021