Now that we have passed another 30 June employers are busy preparing their employees’ PAYG payment summaries. What many employers may not be aware of is that the Australian Taxation Office (ATO) now requires further information to be disclosed on these summaries.

Where an employer pays extra superannuation for an employee over and above the 9% super guarantee charge, then these extra amounts need to be reported on the payment summaries. Sounds simple – it isn’t. 

Calculating the amount to be shown 

Most employers know how much super they have paid for their employees in total but it is not this amount that needs to be reported. Often these extra contributions are known as salary sacrifice contributions but sometimes employers may simply be obliged under certain agreements to pay super at a higher rate than 9%.

The calculation can be tricky as the amount is not total super less 9% of wages; it is necessary to work backwards from what the original salary would have been.

So why does the ATO want this information? From 1 July 2009 Centrelink changed the definitions for many of their benefits to ensure extra super contributions were added on to reported incomes. Centrelink are making use of the ATO to collect the information they require. 

Impact on self-employed superannuation contributions

Unfortunately, there has been a flow on impact to many individuals who had small amounts of wage income but also wanted to claim self employed superannuation contributions. There is a limitation known as the 10% rule whereby if an individual receives 10% or more of their income from wages, they can not then claim self employed superannuation. For many self employed business people who also had a small salary this would be prohibitive so they may have elected to salary sacrifice more of their wage income into super to stay under the 10% rule.

With the change of definition from 1 July 2009 the extra salary sacrificed into superannuation is now added on to wages and so many more taxpayers will now fail this rule and limit how much of a tax deduction they can claim personally.

This combined with restrictive caps on contributions may lead to unexpected tax consequences for those who have not caught up with the rule changes and result in a problem claiming tax deductions. They may also receive a nasty shock with an excess contributions tax assessment if they exceed their contribution caps.

Please contact your local Boyce Director or Accountant for further information about these changes.

“Growing our own people” is central to the Boyce recruitment philosophy and our Cadetship programme plays a major role in helping the firm realise this aim. Cadets have the opportunity to combine valuable practical experience with tertiary study. 

Abbey Johnson is one of the current “crop” of Boyce cadets. You can read Abbey’s take on the cadetship programme in an interview with Boyce HR Manager, Gabrielle McFarland, below. 

Abbey's Cadetship Story

Abbey Johnson (pictured left with Janelle Byrne, Boyce Senior) commenced with Boyce Cooma in January 2008 and started her cadetship in July 2008, when she enrolled in a Bachelor of Commerce degree at the University of Canberra. Two years on, Abbey has reached the half–way point in her cadetship and I recently caught up with her to find out her thoughts about the programme. 

Congratulations Abbey on reaching the half-way mark, how does it feel? 

It’s great! The past two years have just flown by and reaching the half-way point of my cadetship is really satisfying. 

How have you found the university programme? 

The uni programme has been good. I’ve been getting the best of both worlds by studying part-time one semester and full-time the next, this breaks it up. I’m really enjoying the Commerce degree because we’re not just studying plain accounting; we learn about all aspects of business. 

What’s your favourite subject so far? 

I have really enjoyed two subjects so far – Statistics, which happens to be a subject most people dislike intensely, and Company Accounting. 

What’s the best part of the Cadetship? 

The best part is all the learning, sounds like a cliché I know, but that’s what I like. I learn so much from Janelle Byrne (a Senior Accountant) - and it’s not always just about accounting! I also like the team environment within the office, everyone’s really friendly. 

Tell me about the down-sides - there must be some? 

Well luckily there are not really any downsides—apart from having to meet a budget every month. It can get a tiny bit stressful when I don’t think I’m going to reach my budgeted hours. It’s never a good feeling letting the team down. 

What about having to balance work and uni? 

This has been a bit tough; getting the balance right is probably one of the hardest things about the cadetship - besides the uni exams! So far I think I’ve been managing well, I’ve passed all my subjects to date. The travelling between Cooma and Canberra though is tiring - I feel like I know the road like the back of my hand. 

Have you managed to also maintain some sort of social life outside of work whilst studying? 

Social life, what social life?? I’m just joking; I actually think that my social life has improved as I’ve made some great friends both at work and uni. 

Do you think the practical work experience has assisted your learning? 

The practical work experience has been great because I’m not just reading about skills or theories from a text book. I’m experiencing them first-hand and putting them into practice. 

What support have you had since commencing your cadetship with the firm? 

I’ve had great support. The team structure within Boyce means that there’s always someone willing to help me if I’m not sure about something. Financially, the firm has also been really supportive by providing generous exam and study leave and also a text book allowance. 

What has been great …or not so great about working for Boyce? 

Well as I’ve already said, the people at Boyce are great. I’ve made some wonderful friendships and I’m always having a laugh. That makes work fun. I’m not sure about what’s not so great... actually all the chocolate biscuits in the kitchen! They’re a killer - I blame Boyce for all my post-school weight gain! 

Gabrielle McFarland—Boyce HR Manager with Abbey Johnson—Cadet, Cooma

Here at Boyce we’re dusting off our joggers and limbering up in preparation for the annual City 2 Surf challenge. The C2S will be held on Sunday, 8th August 2010 – just over a month away. So its time to start training! 

Last year our team of Boyce clients, staff, friends and family raised more than $12,000 for the Cure For Life Foundation by participating in this event, and we’d like to do even better this year! That’s why we’re issuing a “50 x $500” challenge to staff and clients. Our aim is to persuade 50 people to register and run/walk with the Boyce Team and for each person to raise $500. So you can see we’re hoping to raise a massive $25,000 this year! 

All proceeds will once again go to the Cure For Life Foundation which is a not-for-profit organisation devoted to saving the lives of people suffering from brain tumours through advances in research and education in neurosurgery. 

So come along and help us raise funds for this very worthy cause. You don’t need to run the course - you can walk and take in the great spectacle and scenery. All participants will receive a Boyce Team t-Shirt and are invited to join us for our post-race BBQ. 

HOW TO REGISTER 

To register, visit the City2Surf website at www.city2surf.com.au. Click on the ENTER NOW button and read the entry information. Click again on the ENTER NOW button and select the option that will search for an existing team. Enter Team Name which is “Boyce CA” - use the green tick to search and to select the Team when it appears in the search. The password is boyce. Then click “join”. 

Once you have registered, email your registration form to Julie Schofield who is our Team Captain for 2010 at jschofield@boyceca.com. Julie will be in regular contact with you to keep you informed of the fundraising efforts and details for the day. 

Then you need to register on the Fundraising Website at http://www.everydayhero.com.au/boyce_ca as this is how we manage the fundraising aspect of our team. Click on the button that says “Join this team” and complete the details. Team name is Boyce CA and the password is boyceca. 

OTHER WAYS TO HELP 

Even if you don’t wish to participate in the race, you can contribute by going to the Boyce Team Fundraising page (as above) and click on Donate Now. All donations are tax deductible and will be gratefully accepted. 

You can also join us at the post-race BBQ or you might even like to help out with this. If so, please contact the Boyce City 2 Surf Team Captain (see contact details above). 

We’d love you to be part of this great day and support this very worthy cause. Make sure to mention it to all your friends, family and colleagues - everyone is welcome to join the Boyce 2010 City 2 Surf team and help us meet the “50 x $500” challenge!