apply legal requirements & manage small business finances
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Apply Legal Requirements & Manage Small Business Finances. Lesson 7. Todays Lesson. Chapter 5 - Business Structure / Ownership Relevant links Taxation requirements Finance Spreadsheet, with wages component BAS Statements. Business Ownership / Structure & Registration. Chapter 5. - PowerPoint PPT PresentationTRANSCRIPT
Apply Legal Requirements & Manage Small Business Finances
Apply Legal Requirements & Manage Small Business FinancesLesson 7
Cert IV - M. S. Martin March 2012Todays LessonChapter 5 - Business Structure / OwnershipRelevant linksTaxation requirementsFinance Spreadsheet, with wages componentBAS StatementsCert IV - M. S. Martin January 2012Business Ownership / Structure & RegistrationChapter 5Cert IV - M. S. Martin January 2012Types of Ownership / StructureCommon types of business structure used by small businesses are:Sole trader: an individual trading on their ownPartnership: an association of people or entities carrying on a business together, but not as a companyCompany: a legal entity separate from its shareholders. These can be both private or publicCert IV - M. S. Martin January 2012LinksThe first two links are not functioning correctly, so cross them outThis is the 3rd link on the first page and is a good guidehttp://www.business.gov.au/Business+Entry+Point/Business+Topics/Registration+and+licences/Register+your+business+or+company/Business+structures+in+your+state+or+territory.htm
Cert IV - M. S. Martin January 2012Cert IV - M. S. Martin January 2012
Cert IV - M. S. Martin January 2012
NSW Office of Fair Tradinghttp://www.fairtrading.nsw.gov.au/default.html
Your second page in chapter 5, mentions BLIS. Remember the easiest way to access this is from the OFT site (we looked at it on 1st week)Review this and next slidesCert IV - M. S. Martin January 2012
NSW BLIS - Business Licencing Information Servicehttp://blis.fairtrading.nsw.gov.au/?DCSext.ref=HomePageClick:Onlineservices
Cert IV - M. S. Martin January 2012
Business Taxation 3rd page, Chpt. 5As owner of a business it is your responsibility to work out what your tax requirements areThere are also a range of tax deductions you may be entitled toIn relation to running a business, including taxation and paying workers
The link here will take you to the previous page link for taxCert IV - M. S. Martin January 2012
Briefly Tax and your businessDepending on how you set up your business, will depend on how you and your employees pay tax.If you are a sole trader, it is like personal tax, with deductionsIf you are a partnership, each partner takes care of his or her tax obligationIf you are a company, your tax depends on how you employ yourself (remember the company is a separate entity), but you will also pay company taxIn any scenario, if you employ someone on wages:the law requires that you must also withhold the proportion of tax an employee will pay on their wage for the government. PAYGYou will be required to contribute superannuation paymentsEmployers are required to make their contributions on at least a quarterly basisThese are better conversations to have with your accountant and can also be set up after the business is trading. Note: If you just start trading, you will default as a sole trader initially.Cert IV - M. S. Martin January 2012The Goods and Services Tax (GST)In Australia, this is a value added taxMeaning Added on to the supply of goods and servicesIt was a New Tax System (Goods and Services Tax) Act 1999, taking effect from July 1, 2000The GST is levied at a flat rate of 10% on most goods and services, apart from GST exempt itemsExempt items are, food and beverages for human consumption, school and university fees, hospital treatment... To name a few.You must register for GST if you satisfy both of the following criteria:You are carrying on an enterpriseYoure annual turnover will exceed $75,000 You can claim the GST back when you lodge your Business Activity Statement (BAS)If your turnover is less than $2,000,000, you may elect to lodge your BAS either monthly, quarterly, or annually.Cert IV - M. S. Martin January 2012Business Activity Statements (BAS)Businesses use an activity statement to report and pay a number of tax obligations, including:GSTpay as you go (PAYG) instalmentsPAYG withholding and fringe benefits taxYou can lodge and pay electronically, by mail or in personAn ATO overview guide to BAS statements link is belowhttp://www.ato.gov.au/content/00182753.htm
Cert IV - M. S. Martin January 2012Completing your BASSample Spread sheet 3 with wages component as referenceCert IV - M. S. Martin January 2012Cert IV - M. S. Martin January 2012
Cert IV - M. S. Martin January 2012
12000x500400Cert IV - M. S. Martin January 2012
4092929Cert IV - M. S. Martin January 2012
1090912T2 is given to you by the ATO based on previous income, if its your first statement its an estimate (see your accountant)1309Only if there is a rate change, code is from the ATOCert IV - M. S. Martin January 2012
10902913092428Cert IV - M. S. Martin January 2012
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81811090291309242923482429 81 = 2348ReferencesCompetency reference text for Apply Legal Requirements & Manage Small Business FinancesWeb sites as listed below:http://www.fairtrading.nsw.gov.au/default.html http://www.gstaustralia.com.au/http://www.ato.gov.au/businesses/pathway.aspx?sid=42&pc=001/003/099&mfp=001&mnu=42557#001_003_099http://www.austlii.com/www.standards.com.auhttp://www.ebc.com.au/about/aboutserver.asp?inA=1&hx=1,2,21,88&AID=542&PID=4
Cert IV - M. S. Martin January 2012