Thursday, February 28, 2013

Phew - tax audit is over...or is it?

I know I have been MIA from my blog this last few weeks.  Always seems to happen this way.  This is whats been going on.

  • I get on top of all my work (paid work as opposed to housework - never get on top of that) and start having some quieter days at work
  • This gives me a hope that maybe I could study part time and still get all my work done
  • I enroll at Uni - Unit 1 of 24.
  • I get very excited about it - prepare all my resources  write out a study plan, do a lot of reading, get familiar with how online learning works.  
  • By the 1st February, I am all ready for the start day of 25th Feb.
  • I wait and look at my tub of sharpened pencils.
  • 2nd February, I get a phone call from State Revenue.
  • It appears we have drawn the lucky straw and been selected for a 'random' payroll tax audit.
  • For anyone not familiar with this money gouge tax, its when a business pays $750,000 or more in wages over a financial year.  Not a lot when you think of how much an average wage is.  The govt take from you, 5.5% of every dollar over this threshold.  Doesn't matter if you made a profit at all that year, not relevant apparently. We didn't   We made a loss.  So keeping on staff while we were quiet is going to cost us.  Lesson learnt, sadly.
  • Even though I do keep very good records, always pay what I need to on time  there is still a lot of work goes into collating, getting the documents out of archive, going through SR checklist etc
  • I have been working with my accountant and his assistant for weeks now.  Finally we have it all ready to present.
  • Yesterday, we had the audit (great timing, the last day of the month is always a busy day for me)
  • She said it normally takes anywhere from 4 to 8 hours.
  • My accountant presented her with bound documents for each year, collated and with every record she needed.
  • She took just under an hour to complete her audit!!
  • She gives me a preliminary finding, but I will have to wait for an official one.
  • My accountant says to expect to wait up to 12 months for this!!
  • I sent wine and chocolates and a hundred thank yous to my amazing accountant.
  • We will have a bill for this financial year just gone, but all the other years are fine.
  • We wont be employing any more staff, and pay rises are on hold until they raise the threshold.*
  • Great incentive huh?  We are just a small business - and we get penalised for employing people.
OK.  Back to my study!

* Which I hate, our staff are like family to us.  Each and every one is valued and a human being.  We understand their problems and would love to be able to help with regular pay rises.  We would also like to keep staff on when things get quiet, but sadly we can't now.  This is how, and why bosses have to be tough.  It sucks.


  1. That really doesn't make sense (the law) ahhhh government. Hope you have a much better March, Feb seemed to be busy for a lot of people

  2. Sorry to hear, look forward to better times. xxx