Business
Check it out on Itunes | StitcherAN ALL NEW EPISODE.We have Damien Lehman, commercial and tax lawyer from Andreyev Lawyers. He generously shared his expertise in payroll tax and how it can affect small business owners. Here are some of the key takeaways from this episode:1. Be aware of your current payroll position to avoid nasty surprises.Payroll tax is a tax many small business owners aren’t aware of at first, and as their business grows, it can creep up on them and come as a rude shock. It is very important to be aware of its intricacies as early on as possible in your business. Payroll tax is a fact in business and something that you can’t avoid as your business grows, so it is better to learn to manage it as early as possible.2. Be clear of what counts as wageWith such a broad definition of payroll tax, it is vital to know what counts as a wage. Wages, Allowances, Superannuation, Employee Share schemes and Fringe benefits are just some of the things subject to payroll tax. Once you get a better grip of what counts towards payroll tax, you are then in a better position to structure your remuneration. Getting advice from professionals, such as your trusted partner accountants, is a great way to manage this. 3. Have clear contractsFrom our talk with Damien, it was clear that the grouping of employees and even contractors can be broad by definition. It is important to be transparent with contractors in dealing with their contracts with your business. Make sure your contracts are professionally worded so that it is clear they fall outside the guidelines of payroll tax. 4. Get everything documentedDocumenting everything you do in business can be simple but often ignored by small business owners. For something as complicated as payroll tax, it is important to have clear contracts and documentation at your disposal. In the event of audit, you are then best placed to respond quickly.5. Be proactive and don’t stick your head in the sandIn every tax complications that you may encounter with either the ATO or Revenue NSW, do not ignore it. It is better to be proactive and face the issues head on. It is actually an advantage to respond immediately than to ignore, which will then lead to a more complicated issue in the future. 6. Always take the opportunity to learnDamien touched on the importance of learning constantly. By doing this, you’ll realize your passion and a new way of thinking will present itself. 7. Break down the barriersFor a lasting business, be sure to remove the barriers between you and your customers. Find or develop ways to make it easier for you and your clients to do business.