Now is the time to ensure that your PAYG obligations are balanced in preparation for the 2011 payment summaries.  The summary should also include any reportable fringe benefits amounts for cars and other benefits provided for the period to 31 March 2011.  Reportable employer superannuation contributions also need to be reported (see below).  Taxable allowances and lump sum payments made to the employees should be included in the summary.

Most payroll software will automatically calculate and prepare the PAYG summaries, including the media file to be sent to the Australian Taxation Office.  You should ensure that you have an up to date version of the payroll software if relying on this to prepare the payment summaries.

The PAYG summary should be provided to the employees latest by 14 July 2011, and the annual PAYG summary statement, which shows the totals of all payments made, needs to be lodged no later than 14 August 2011.  The Australian Taxation Office have been quick to apply penalties in the past for late lodgement of this summary statement.  Please seek help from your Saward Dawson advisor if you need assistance in this area.

Special arrangements can apply where all of the employees are related to the business, in which case lodgement can be delayed until the tax return is lodged.