February 2011 Newsletter

• Stepping out in 2011 - 520 registered - only 320 places left - BOOK NOW!!!
  
  
• Disaster Recovery - Information you do need - and should implement, just in case...
  
  
• BAS Agent Portal - Are you still having problems?
  
  
• Debate on Record Keeping - What proof is required??
  
  
• Accounting for Employee Benefits - What you need to know
  
• Products and Solutions - BillsTrust, Online bill payment system 

The PDF version of this newsletter is available here 

    527 registrations to date, some venues nearing capacity - BOOK NOW

Development conference for ALL Professional Bookkeepers......     This is a day you CANNOT afford to miss!! Full Agenda details available here
Click on the location link below for detailed information and to book securely online - Members, do not forget to logon first to obtain the Member pricing
Launceston Tuesday March 1, 2011	Canberra Wednesday March 2, 2011	Sydney Thursday March 3, 2011
Melbourne Tuesday March 8, 2011	Adelaide Wednesday March 9, 2011	Perth Thursday March 10, 2011
Brisbane Tuesday March 22, 2011	Cairns Wednesday March 23, 2011	Darwin Thursday March 24, 2011
Click on the links above for detailed information and to book securely online
Sessions from 9.30am until 3pm - ICB Members information session until 4pm (Morning Tea, Lunch and Afternoon Tea Included) $200.00 - Full Members $225.00 - Student and Subscriber Members $270.00 - Non  Members To complete a paper registration form click here
When you register and pay securely online you do not need a PayPal account, click on the "Continue" link you will see on the payment screen (sample below).
Proudly Sponsored by:

***** All Darwin attendees please note: The Crowne Plaza had had to under go some unexpected renovations. The new venue for the Darwin conference is:

Holiday Inn Esplanade Darwin
122 The Esplanade
Darwin

(Enter via Mitchell Street)

Why should I take out cover above the TPB minimum?

Each insurance proposal form you painfully complete asks relevant questions around key factors including those listed below referred to by the TPB. This gives in our case Insurance Made Easy (the broker) & Chubb (the underwriter) the opportunity to review your own individual circumstances and provide you with guidance as to the most appropriate level of cover. No one bookkeeper will be exactly the same and our role is to work closely with you and identify where the minimum cover is not adequate.

One such recent example was a bookkeeper that only had six clients but was earning approx. $100,000 in gross income. Their duties included; normal bookkeeping, preparation/submitting BAS, but also included; completing insurance renewals, arranging finance, review and recommendation of suppliers, staff contracts etc. This Bookkeeper clearly requires additional/increased levels of cover beyond what is deemed adequate by the TPB.

Another recent example was a bookkeeper that provided IT services beyond working with accounting software, again additional cover was required for this client.

There are clear guidelines as to the minimum requirements from the TPB, they are set out as follows:

1. The volume of business in terms of turnover
2. The number and kind of clients
3. The kind or types of services provided
4. The number of employees, contractors
5. The degree of risk

Element 5 above “The degree of risk” is effectively the multiplying of elements 1-4. In conjunction with your Insurance Made Easy consultant all these elements will be examined and we will provide you with appropriate guidance to find the level of cover that is most suitable for you and your business.

It is worth noting that your ICB preferred product provided by the Insurance Made Easy / Chubb policy automatically includes for no extra cost, defense and legal costs in addition (on top of) to the level of cover selected.

For further information, please contact Helga or Sam at Insurance Made Easy on 1800 64 1260.

 Does the above article make sense? Do you have any questions as a result of the above? Link to the ICB Forum thread on this article and post your reaction.

A lot of people including Accountants are of the view that source documents are not required if transaction is under $82.50.

We are here to debate this!
(but be warned Matthew says “there is no debate, it is black and white”)

The ATO states:
To claim GST credits, you must have a valid tax invoice for the goods and services that you purchase for your business. However, you can claim GST credits for business purchases you make up to $82.50 without holding a tax invoice as long as you keep records that support the claim (for example, cash register dockets or receipts). These records will also help you keep track of any GST credits you can claim.
http://www.ato.gov.au/print.asp?doc=/content/13286.htm

The records the ATO asked to be kept include:

• sales and expense invoices
• sales and expense receipts
• cash register tapes
• credit card statements
• bank deposit books and cheque butts and bank account statements.

(Ref: ATO guide “Record keeping for small business”)

National Fair Work Standards for Accruable Entitlements are:-

It is the decision of the employer whether these entitlements are to be reported in their financial statements. “Reporting Entities” or “Large” companies which are more often subject to application of the accounting standards may be legally required to report the outstanding entitlement values. AASB119 is the Accounting Standard in relation to “Employee Benefits” which can be found at www.comlaw.gov.au

  Have a question or a comment? Click here

Is it the bookkeeper's responsibility to advise the ATO if the SGC has not been paid on time?

Answer:
Officially today our obligations for payment of Superannuation Guarantee Contribution 9% (SGC) is out of the scope of bookkeepers and believe it or not BAS Agents too. However for BAS Agents ICB have submitted to the Tax Practitioners Board (TPB) & Treasury for SGC to be part of a BAS Agents day to day payroll duties so hopefully this anomaly should be fixed.

  Do you have a question or a comment? Click here

As a BAS agent, you must ensure your use of the BAS Agent Portal is legitimate and appropriate. This means you must:

• hold a current and unrevoked client authorisation
• only access information or carry out transactions relevant to that authorisation.

Once an authorisation has been revoked, you are no longer entitled to access that information or carry out those transactions.

Client authorisation

You should have formal written authority from your client to act on their behalf before you add their ABN to your client directory.

Examples of using the portal

Appropriate access

Example 1

You hold a current authorisation from a client for activity statement purposes and you access the portal to obtain information that relates to preparing your client’s business activity statement.

This access is appropriate because you hold a current authorisation and you are accessing information relevant to that authorisation.

Inappropriate access

Example 2

A former client owes you money, so you add them to your client directory and access their record to obtain additional contact details to pursue the debt.

This access is inappropriate because you are not currently authorised and you are obtaining information for your own purposes.

Example 3

You plan to visit a local business and offer them your services. To prepare for your visit, you add their Australian business number (ABN) to your client directory and review their record.

This access is inappropriate because you are not authorised and you are obtaining information for your own purposes.

Misusing your portal access

If you misuse your access to the portal:

• your access may be revoked
• you may be in breach of the Tax Practitioners Board’s Code of Professional Conduct.

Last Modified: Monday, 24 January 2011

 You can add your input to the ICB forum submissions here 
 

Upcoming Confirmed Meetings:

Actions for you to think about over the next few weeks

Commence your PMC studies in February 2011

The Payroll Management Certificate is run by The Association for Payroll Specialists. On completion of the course, graduates are awarded with a certificate of completion from Charles Sturt University, one of Australia's leading distance education providers.

The course consists of 5 Fantastic Modules specifically designed for payroll people with their future in mind. The PMC course equips you with the understanding of the overall payroll function within an organisation in either the private or public sector giving students an appreciation of the integration of the payroll, human resources and accounting functions.

Develop the skills required to manage the payroll resources of staff and systems and advance your career of choice.

The PMC has been designed with you in mind - and is flexible enough so you can study and work at the same time.  

• Complete in 12 months or over 3 years
• Do by lecture learning (Sydney CBD) or by distance
• Can be started part way through the year

The PMC is your Pathway to Professional Development

On successful completion of the TAPS Payroll Management Certificate, Charles Sturt University will award students with two subject credits (16 points) towards a Graduate Certificate in Professional Development, an innovative postgraduate qualification individually tailored for your work responsibilities and career objectives. 

Download and complete the application form.

Download the complete guide to PMC.

For further information on the Payroll Management Certificate or other training provided by TAPS, please contact:

Roya Nadimi
5/37 Pitt Street
Sydney NSW 2000
Ph: 1300 711 240
Fx: 02 9258 2155
training@payroll.com.au 
 

Why? What goes wrong?

Below are the 9 main reasons most businesses fail... 

1. Poor Marketing: 
   
2. Cashflow Problems:
   
3. Poor Business Planning:
   
4. Lack of Finance:
   
5. Failure to Embrace New Technologies and New Developments:
   
6. Poor Choice of Location:
   
7. Poor Management:
   
8. Poor Human Resource Relations:
   
9. Lack of Clear Objectives:
   

Business however, can also be the No.1 positive cash flow strategy and has the power to make you millions... Like anything in life, with reward, comes risk and you need to know how to minimise your risk and maximise your profits. 

 Do you have a question or a comment? Click here

Under the Small Business Fair Dismissal Code, a ‘small business’ is now defined as having fewer than 15 employees.

Previously, a ‘small business’ was identified by taking the total number of hours worked by all employees in the business and dividing it by 38 to find the full-time equivalent. The definition is now based on a simple headcount of the number of employees in the business, whether they’re full-time, part-time or casual employees employed on a regular, systematic basis.

For more information on the change, or for an updated copy of the Small Business Fair Dismissal Code, visit the Fair Work Ombudsman website.

  Do you have a question or a comment? Click here

Notice of termination

What happens when I terminate an employee?

There are a number of requirements you need to meet when you terminate the employment of an employee, including providing notice of the termination in writing. These requirements are in the National Employment Standards (NES).

Notice periods

What happens when my employee resigns?

Under the modern award, if an employee resigns or ends their employment, they need to give you notice of termination. The amount of notice they have to give you is the same as the amount of notice you have to give them under the NES (you can find this information using the link above), except that your employees don’t need to provide additional notice based on their age.

If an employee does not give you the correct amount of notice of termination, you can withhold money from their final pay equal to the amount they would have earned if they had worked during the notice period.

Note: An employee’s final pay includes any outstanding wages (including penalty rates and allowances), unused annual and long service leave, redundancy payments (if applicable), and pay in lieu of notice of termination (if applicable). You should also ensure you make the required payments into the employee’s superannuation fund.

Example

Amy has been working full-time for 3 and a half years. Amy decides to resign and gives her employer, Lyn, 1 week’s notice.

Under the NES, the notice period is 3 weeks for an employee who has worked 3 – 5 years, Amy should have given Lyn 3 weeks’ notice. Lyn advises Amy that she will withhold the equivalent of 2 weeks’ wages from her final pay to cover the additional 2 weeks’ notice that she did not provide. (Click here for details on Notice Periods)

For information about unfair dismissal, the Small Business Fair Dismissal Code and what to pay your employees in their final pay. 

(http://www.fairwork.gov.au/industries/retail/Pages/Notice-of-termination.aspx) 

  Do you have a question or a comment? Click here

The Australian Consumer Law (ACL) which took effect from 1 January 2011 contains a set of 12 guarantees – the consumer guarantees – which all consumers are given when they purchase goods or services. The ACL also outlines what remedy a business is required to give a consumer if the guarantees are not met. These guarantees replace the implied conditions and warranties in the Trade Practices Act and state and territory consumer protection provisions.

It is vital that businesses and their staff understand both the rights of consumers under the new guarantees, and also their rights. Businesses must also understand how any voluntary or extended warranties they offer operate alongside the consumer guarantees.

In order to assist businesses understand their obligations the ACCC has developed an education module which explains the consumer guarantees and the remedies available when a guarantee is not met. The module was developed with assistance from state and territory consumer protection agencies, as well as a number of industry participants, and it explains how the new law applies to the supply of both goods and services.

The ACCC encourages all business, regardless of their size, to use the education module as part of their own staff training. The module is available on the ACCC website at:
www.accc.gov.au/consumerguarantees 

Specific materials, including guidance on the consumer guarantees have been jointly prepared by the ACCC, ASIC and the State and Territory consumer protection agencies and are available at:
http://www.consumerlaw.gov.au/content/Content.aspx?doc=the_acl/guidance.htm.

More information on the ACL can be found on the ACCC and state and territory fair trading websites and at:
www.consumerlaw.gov.au 

Since the release of the ICB Forum last month, there is a total of 36 subscribers and over 1250 topic views!!

Of the fourteen current topics there have been 63 posts - not bad at all!!

We have added two new catergories - Setup / Your Profile and Latest Updates.

Setup / Your Profile is where you can add a username, add / change your signature and you can add a picture or an avatar here also.

The Latest Updates lists all the topics in order of the replies.

You can click here to view all the current topics, Matthew is currently our top topic starter, would be great for someone to 'knock him off from top spot'.

We are aware there is an issue with the forum being in a 'loop' when you first access the page, if you manually refresh (Control R) this will overcome the problem. Many thanks to those who brought this to our attention.

Second Commissioner Bruce Quigley today announced the ATO will allow deductions without a receipt for donations up to $10 made to 'bucket appeals' for the floods in Victoria, Queensland and New South Wales.

http://www.ato.gov.au/distributor.asp?doc=/content/Content/00267947.htm

Published: 21 Jan 2011

Focus on GST compliance

As part of the 2010–11 Budget, we have received extra funding to implement a range of additional GST compliance activities over the next four years to ensure businesses willing to do the right thing are not disadvantaged by unfair practices, with everyone paying their fair share of tax.

We will continue to expand our ability to identify non-lodgers and detect businesses that over claim entitlements, deliberately under report or omit income or do not meet their obligations. To do this we will:

• match data from an increasing number of sources including other government agencies
• verify refunds by phoning or visiting businesses and contacting third parties to substantiate claims
• contact you if your lodgment is not up to date with us
• contact you if your details are not up to date or we will re-issue held activity statements
• use sophisticated risk models to detect incorrect or fraudulent refund claims on business activity statements (BAS)
• take firm action with those businesses that will not work with us to arrange payment of their debts, or who fail to comply with their agreed payment arrangements
• apply harsh penalties or prosecute people who consistently or deliberately do not lodge activity statements.

We will be increasing our contact with businesses:

• to assist people with meeting BAS lodgement obligations on time (you might receive a letter or SMS prior to the due date for lodgement of activity statements)
• who have a record of untimely or non-lodgement of activity statements (you or your agent might receive a letter, phone call or SMS if your lodgement is not up to date)
• to verify GST refund claims (this includes checking claims with third parties)
• who are not meeting their GST obligations
• who have ageing GST debts? 

4 You must still lodge your activity statement even if a nil amount is owing or you cannot pay.

Remember, if you have made an error, you can correct it by making a voluntary disclosure or contacting us for assistance. In some cases, penalties may be reduced if you make a voluntary disclosure.

4 For more about what we are doing in regards to GST compliance, visit GST essentials.

4 To make a voluntary disclosure, refer to Voluntary disclosures - approved form.

 Do you have a question or comment? Click here

• Apply for ICB Membership here
• Renew your ICB Membership here
• BAS Agent updates and information

BillsTrust         Optus           MYOB           Xero                ICB Global            Cengage

Please note that, in between newsletter issues, articles may be published straight to the Latest News section of the website.   Please check the headlines which can be found in the top right of the website homepage, to ensure you stay up-to-date.

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ICB's Newsletter contains news articles, links and regular sections that we feel will be of interest. If there is anything that you would like to see, whether a regular feature or a one-off, please let us know. Email your ideas to admin@icb.org.au