Moore Evolved Business Solutions – Frequently asked Questions

• If your business has a total turnover of $75,000 or more
• You are a non profit organisation and have a turnover of $150,000
• You provide a Taxi, Uber or Limousine Service
• If you would like to register for GST

• Most business report Quarterly, Every July, October, January, April
• Large businesses must report Monthly.
• Some Businesses report yearly however the pay quarterly based on yearly average

• Sole Trader – The person and the business are the same entity
  • Advantages
    • Simple
    • Taxed at personal income rates
  • Disadvantages
    • Total exposed to risks
• Company – A new entity is created which runs the business
  • Advantages
    • Separation can provide some protection of your assets
    • Maximum tax of 30%
  • Disadvantages
    • Increased cost in administration
    • Pays flat tax 30% or 27.5% on first dollars earned
• Partnership – An association of people or entities running a business together but not a company
  • Advantages
    • Simple and Inexpensive
  • Disadvantages
    • Partners are fully responsible for Debts and Liabilities
• Trust – A entity that holds property or income for the benefit and/or distribution to beneficiaries.
  • Advantages
    • Limited liability is possible
    • Structure provides more privacy
    • Flexible distribution to beneficiaries
  • Disadvantages
    • Complex Structure
    • Expensive
    • Borrowing is complex

• Register for PAYG
• Get an Employment Agreement
• Work out how you want to Employee them Casual / Part Time / Full Time
• Find a way to manage your payments including Payslips and report Single Touch Payroll. This will normally involve software.
• Manage Superannuation

It is the tax payers responsibility to track how much GST has been collected from customer and how much has been spent with suppliers.

For Smaller business you may track this via a physical book or excel spreadsheet

As the business grows there are many software products with will manage the process

Examples of Software

• Quick Books Online (QBO)
• Xero
• MYOB
• Reckon

• Full Time
  • Award sets minimum wage
  • You can alter the pay rate as long as overall they are better off than minimum wage.
  • National Employment Standards cannot be removed.
    • Maximum weekly hours – 38 hours per week from 7am to 7pm
      • Anything above must pay overtime.
    • Requests for Flexible Working arrangements
      • Employers can only refuse on reasonable business grounds
    • Parental Leave and related entitlements
      • If you employee or the partner gives birth or adopts a child
        • 12 Months Unpaid Parental Leave
    • Annual Leave –
      • Minimum 4 weeks every 12 months
    • Personal Carers Leave for Employee or immediate family
      • Minimum of 2 weeks
    • Community Service Leave
      • Voluntary Emergency Management Activities
      • Jury Duty(including selection for Jury Duty
    • Long Service Leave
      • 10 Years – 8.6667 weeks
      • Less than 7 years no entitlement
    • Public Holidays
      • Different entitlements on Public Holidays
    • Notice of Termination and Redundancy Pay
      • 1 Year or Less –   Minimum Notice Period 1 week
      • 1 Year to 3 Years –   Minimum Notice Period 2 week
      • 3 Years to 5 Years –   Minimum Notice Period 3 week
      • More than 5 Years –   Minimum Notice Period 4 week
      • Over 45 Year old one extra week if over 2 years
    • Fair work Information Statement
• Part Time – Same as Full time except less hours – But set and consistent
  • Holidays and Carers Leave calculated on a pro rata basis
• Casual
  • Receives 25% extra
  • Only Receive
    • Unpaid Carers Leave
    • Unpaid Compassionate Leave
    • Community Service Leave
• Contractors
  • Independent Contractors
    • These people run there own business. They are hired to perform a task or tasks. Generally they use then own tools and methods to complete the work. They can delegate or subcontract task if needed.
  • Contractors
    • A Contractor is someone who enters into a contact with another business or person at a fixed price.
  • Subcontractors
    • A subcontractor is a independent contractor that is hired by another independent contractor to help them.
• Contractor vs Employees
  • Employee is paid a wage
  • Employee has set hours
  • Employee is entitled to paid holiday leave and sick leave
  • Employee is entitled to Superannuation

• Employees who earn more than $450 per week in a calendar month
• Employees under 18 years who work more than 30 hours per week
• Eligible employees must be paid at least 9.5% into their superannuation

• Clearing houses

1. Prepare you business
   1. Register your business for PAYG Tax
2. Work out what you need
   1. Work out type of employment – Full Time, Part Time, Casual or Contractor
   2. Find the mimimum wage as https://calculate.fairwork.gov.au/findyouraward
   3. Pick a pay period – Monthly, Fortnightly or Weekly
3. Find an employee
   1. Advertise
   2. Interview
4. Get them Started
   1. Get a contract  and get is signed
   2. Get them to complete Tax File Declaration
   3. Provide Superannuation Choice form
   4. Provide Fairwork Information Sheet
5. Manage Payroll
   1. Find Software or other method to calculate and Manage
      1. Tax
      2. Leave
      3. Superannuation
      4. Provide Payslips
      5. Provide Payment Summary
6. Report PAYG with BAS
7. Pay Superannuation before the 28 of the month after the quarter

1. Create a business Plan
2. Crunch the numbers
   1. How much do I need to sell
      1. Break even
      2. Profit – Taking money to survive
   2. How much money will I need to get started
3. Register an Australian Business Number ABN
4. Find a way to track income and expenses