SINGLE TOUCH PAYROLL (STP)

If you run a business and employ staff, then you will be required as of 1 July 2019 to comply with the Single Touch Payroll rules.

PRIVATE USE OF BUSINESS CARS

It is fundamental that a car fringe benefit occurs when a business owns or leases a car and makes it available for their employees’ private travel. Don’t forget, business directors are also employees.

Private use of a company car includes:

• Employees using the car for private travel, such as travel between work and home
• Garaging the car at or near an employees’ home and making it available for private use-Even if the car is not used by the employee

ESTABLISHING A CONTRACTUAL RELATIONSHIP

Before you decide to hire an employee, you conduct reference checks to determine their suitability to perform the role. Hiring a contractor requires a similar process.

• Licensing and legal requirements
• Ask for references and work examples
• Be aware of anything out of the ordinary