The document discusses the complexities of payroll compliance for business owners, likening it to a game of snakes and ladders due to constantly changing regulations. It outlines key payroll terminology such as wages, allowances, superannuation, and various tax obligations including payroll tax, BAS, and STP. Finally, it highlights the benefits of transitioning to cloud accounting solutions for easier payroll management and offers assistance from bookkeeping experts.

1. Payroll Terminology
Explained

2. It can be a headache for business owners navigating
their way through the minefield that is payroll
compliance.
I was chatting with a client who best described it as a
game of Snakes and Ladders. We laughed but she was
dead right. It seems that as soon as you get your payroll
groove on and start getting ahead, climbing ladders (so
to speak!), a law changes or a requirement is updated
and off you go sliding back down to where you started.
In the last two blogs we talked about the payroll
process and also employee payslips and how to get
them right.

3. It is a tough area to stay on top of, so to help you we
have put together a payroll compliance guide for
business owners with some key requirements and
terms so you can keep on top of it all.
Wages and Salaries
This is the total remuneration, in cash or kind, payable
to all persons counted on the payroll in return for work
completed. It can be paid weekly, fortnightly, or
monthly. Getting it right keeps your team happy and
prevents infringements and penalties.

4. Allowances
A specific amount paid in addition to an agreed salary
such as allowances for tools, uniforms and overtime.
These depend on the industry and the Award.
Superannuation
This is a way for employees to save for retirement. A
percentage of an employee's wage or salary is
deposited into a superfund account. Penalties are high
when super is not calculated correctly or paid on time.

5. Other Payments
There is a variety of payments that may be required
from time to time such as salary sacrifice, workers
compensation, bonuses, maternity leave and long
service leave.
Payroll Tax
Applicable when your total wage bill exceeds a
threshold amount. Paid monthly, payroll tax rates and
thresholds vary between states and territories.

6. IAS
An Instalment Activity Statement (IAS) is applicable for
taxpayers who make PAYG instalments and completed
monthly.
BAS
A Business Activity Statement (BAS) is a monthly or
quarterly reporting requirement from the ATO. It's used
for reporting and paying GST and includes PAYG
instalments, and PAYG withheld from your employees
wages.

7. FBT
Fringe Benefits Tax is the tax employers pay annually on
certain benefits they provide to their employees,
including their employees family or other associates.
PAYG Payment Summaries
Payment Summaries are historically what employers
would provide to their employees at the end of a
financial year, summarising the total wages paid and
tax withheld from those wages. This was retired on 30
June 2019 with the roll-out of STP.

8. Single Touch Payroll (STP)
STP is the technology platform whereby payroll
software submits payroll data to the ATO everytime a
payrun is processed.
And if you don’t know your BAS from your IAS or your
PAYG from your FBT, that is absolutely fine. Remember
that iKeep Bookkeeping, as specialists in cloud
accounting and online payroll solutions, are here to
help.

9. One of the benefits our clients find when they transfer
payroll from a traditional, manual payroll System to a
streamlined cloud accounting approach is the minimal
fuss around when a law or requirement gets updated
or changed or even a brand new one created. Clunky
manual updates are replaced by automated and
streamlined processes that mean less time and money
spent on administrative requirements for you as the
business owner or your accounts person.

10. While it’s good to have knowledge of the legal
requirements and the terms we’ve shared with you in
the guide today, it’s also good to outsource
bookkeeping the intricacies of bookkeeping to a team
who definitely know their BAS from their IAS and what
to do with it! Book a call with one of our experts to
learn more about how we can help with your payroll
processing.
For more information contact us iKeep Bookkeeping.