apply legal requirements & manage small business finances (also incorporates some contracts)

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Apply Legal Requirements & Manage Small Business Finances (Also incorporates some contracts). Lesson 13 S ome slides courtesy of M. Naidofski. Todays Lesson. 1. Payroll Systems, GST and Superanuation Requirements Reference: Chapter 5 – taxation and Super - PowerPoint PPT Presentation

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Apply Legal Requirements & Manage Small Business Finances

Apply Legal Requirements & Manage Small Business Finances(Also incorporates some contracts)Lesson 13 Some slides courtesy of M. Naidofski

Cert IV - M. S. Martin March 2012Todays Lesson1. Payroll Systems, GST and Superanuation RequirementsReference:Chapter 5 taxation and SuperPayroll & GST additional notesCert IV - M. S. Martin January 2012EmploymentAs previously discussed, under chapter 5, a Business can operate as a Sole TraderPartnershipCompany

If you employ employees under any of these systems, you have legal responsibilities for taxation and other requirements.Cert IV - M. S. Martin January 2012Statutory ControlsThe main authorities which affect the record keeping requirements of all employers are the: Australian Taxation Office (ATO) Department of Industrial Relations (DIR) http://www.industrialrelations.nsw.gov.au/Home.htmlDepartment of Employment, Education and Training (DEET) (change your text) now, department of Employment, Education and Workplace Relations (DEEWR)http://www.deewr.gov.au/Pages/default.aspx

Cert IV - M. S. Martin January 2012Statutory ControlsIn New South Wales the following authorities are relevant: WorkerCover New South Wales Australian Construction Industry Redundancy Trust (ACIRT) http://www.acirt.com.au/Building and Construction Industry Long Service Payments Corporation. (LSPC) http://www.longservice.nsw.gov.au/Australian Taxation Office (ATO) Cert IV - M. S. Martin January 2012Basic Building OfficeCert IV - M. S. Martin January 2012

Awards & Other FormsForms for employee payments, bank authority etc.BAS, PAYG, PAYG instalmentsATO FormsLong Service Leave, recognition of serviceSuperannuation - The current contribution is 9% of your salary and your employer will automatically pay this on your behalf to a Superannuation Fund, but only after you have earned a minimum of $450 in a calendar month.http://www.ato.gov.au/individuals/pathway.aspx?pc=001/002/064&alias=superWorkers CompensationSick Leave

Cert IV - M. S. Martin January 2012Payroll SystemsManual systems For most small businesses (eg. with less than 10 employees)Computerised payroll systemsCert IV - M. S. Martin January 2012Payroll ItemsGross pay Earnings Employees may be paid using several methods of remuneration, including : Hourly wage Hourly wage with overtime entitlement Yearly salary Piece-rate Commission Bonuses

Cert IV - M. S. Martin January 2012Payroll ItemsEntitlements The gross wage can also include the following entitlements: Sick leave Annual leave Study leave Maternity leave

Cert IV - M. S. Martin January 2012Payroll ItemsAllowances Other amounts may be included in the pay-packet which are designed to compensate the employee for personal work related expenditures. These may include: car allowances travel allowances meal allowances tool allowances site allowances height allowances

Cert IV - M. S. Martin January 2012Processing the PayrollRecords required Employee history card Time sheets The wages journal Pay-slips Employee earnings record PAYG Payment Summary (Group certificates) Cert IV - M. S. Martin January 2012Methods of Wage Paymentscash cheque electronic funds transfer. (EFT)

Cert IV - M. S. Martin January 2012GSTGoods and services tax (GST) is a broad-based consumption tax charged at the rate of 10% on the sale of most goods and services and other things in Australia GST is charged at each step in the supply chain, with registered businesses including GST in the price of goods and services they sell. You must register for GST if you are in business and your GST turnover is at or above the registration turnover threshold of $75,000 per year. One trap with building and other businesses, is you cant double dip, that is charge the GST twice.Be careful when you invoiceAccounting for GST BAS statements, previously coveredCert IV - M. S. Martin - May 201214ExerciseYou are a Building company, you employ:I x secretary (part time, one day week) wages1 x Labourer (full time, 40 hour week) wages1 x Carpenter (full time, 40 hours week) wages2 x Carpenters (70% year on average) sub contractorsUp to 6 x other subcontractors (periodically) job to job basisWhat are the legal obligations for your business ? Make a dot-point list for each personCert IV - M. S. Martin January 2012Review Development Application ProcessYour on-line assignment would be your referenceCert IV - M. S. Martin January 2012Intergraded DevelopmentYour assignment didnt fall into this category, but you should be aware:Some types of development also require an approval, licence or permit from another State agency or departments, as well as development approval from council such as:excavation or removal of material within 40m of a river, lake or lagoon cut, remove, damage or destroy marine vegetation

Cert IV - M. S. Martin January 2012Intergraded Development cont.damage, move, alter or undertake any development on an item listed on the Heritage Act (State Significant Development) destroy, deface or damage an Aboriginal Relic or Aboriginal Place licences to pollute erecting a structure or working within a Crown roads, tollway or freeway.

Cert IV - M. S. Martin January 2012When is a DA requiredA DA is required unless the proposed structure is a COMPLYING or EXEMPT developmentNote: Some councils now have a combined document for all applications, just some areas will remain blank, depending on the application.Cert IV - M. S. Martin January 2012

Complying & Exempt DevelopmentsTypically, this is where your assignment fitted in.Certain buildings or developments that have a low impact and do not require a development application or a construction certificate are categorised as Exempt Development or Complying Development. Randwick Council has prepared a Local Environmental Plan (LEP) and a Development Control Plan (DCP) which set out the relevant controls for these types of developmentOther Councils do the same, typically, are now often available on-line, but sometimes require a fee

Cert IV - M. S. Martin January 2012

Exempt DevelopmentThis is a typical extract of this type of developments description.

It is of a minor nature and may be carried out without Council consent. Exempt development includes certain:televisionaerials, air conditioning units and barbeques retaining walls and fences awnings, pergolas, cabanas, greenhouses, gazebos, garden sheds and cubby houses driveways, pathways, patios and other paved or sealed areas at ground level non-structural/non-load-bearing internal alterations and building renovations * repairs and maintenance work re-cladding of walls/roofs and skylights * disabled access facilities home activities * special events * water tanks.Cert IV - M. S. Martin January 2012

Complying DevelopmentsSome of the types of development listed as complying development include:

alterations and/or additions to dwelling houses internal alterations to commercial buildings carports and garages shade structures, conservatories, awnings and pergolas new dwelling houses (single storey only) fences and retaining walls fire safety upgrading works * hoardings shop or office fit outs, shopfronts and awnings * home activities portable classrooms * certain types of subdivision swimming pools and spas * changes of certain commercial uses.

Assessment Process Step by stepCert IV - M. S. Martin January 2012Pre Assessment Team1. Pre-Assessment Team The Pre-Assessment Team will undertake a preliminary assessment of the application to ensure that the information provided complies with Council's policies and they will also check the quality of the plans. If there are any noticeable problems the applicant will be notified, usually in writing, within 7 days. This may delay the processing of the application if there is insufficient information provided to commence the assessment. The team determines the officer who will assess the application and any referrals required to specialist council officers such as landscape architect, development engineer.

Cert IV - M. S. Martin January 2012Notifications & Submissions2. Notificationand Submissions The application may require notification, in accordance with (eg) City of Ryde Development Control Plan 2006 During the notification period members of the community are entitled to make submissions about the proposed development. Also copies of the application including plans are available for viewing at the Customer Service Centre.

Cert IV - M. S. Martin January 2012

Assessing Officer3. Assessing Officer When the notification period has finished the assessing officer will commence assessing the application. The application may be determined under delegated authority or dependant on the nature of the application, the submissions received and/or variations to Council's codes the application may be forwarded to the Council for determination

Cert IV - M. S. Martin January 2012

Determination4. Determination The applicant and all those who made submissions will be informed of the determination. Applicants who are not satisfied with the determination may seek a review of the determination and/or appeal to the Land and Environment Court If consent is granted applicants would then need to apply for and receive a construction certificate before work can commence.

Cert IV - M. S. Martin January 2012

Construction CertificateUsed to be called Building Certificate

Effect has been scaled back to DA PhaseEngineering / Hydraulic etc DrgsNotify Prescribed Certifying Authority (PCA)Update drawings to take account of DA conditionsPay fees such as Long Service Levy, Notify BuilderProof of Home Owners WarrantyCert IV - M. S. Martin January 2012

Cert IV - M. S. Martin