How to get your employee records and tax statements in order

Tax time and staff records don’t have to be a headache. Here’s how small business owners can stay on top of employee records and tax statements.

1. Kick off with solid record‑keeping

The ATO urges businesses to “keep accurate and complete records as they occur”. It’s no surprise that they’ll ask for evidence of income, expenses, wages, super, GST and more. As small business bookkeeper MyBooks puts it: good records are “about protecting your cash flow, reducing stress at tax time, and staying on the ATO’s good side”.

What you should do: Use cloud-based software, snap receipts straight away, reconcile daily takings weekly. Don’t leave it ‘til June 30.

2. Keep records for at least 5 years (or more!)

According to the ATO, most tax and super documents must be kept for five years, starting from when they’re prepared, obtained, or a transaction. Got depreciating assets or capital gains? You’ll often need to hang onto those records for longer.

What should you do: Create a digital folder with subfolders like ‘Wages’, ‘Super’, ’Invoices’, and set automated cloud backups.

3. Master payroll and STP

Since STP Phase 2 launched way back on 1 January 2022, businesses must report employee pay events every time staff are paid, including salaries, tax withheld, and super.

Important points to note:

Use STP-enabled payroll software.

Submit finalisation by 14 July each year.

You can amend finalised data up to 5 years after lodgement.

What you should do: Schedule payroll in your calendar for weekly/fortnightly runs and the July finalisation. Easy wins when it’s automated.

4. Keep TFNs & super contributions safe

As a registered employer, you’re storing sensitive info—Tax File Numbers and super details. The Privacy (TFN) Rule applies, so lock them up digitally or physically. Password-protect files or use secure cloud storage. Keep payroll and personal accounts separate. It’s like Vegemite and peanut butter on different slices, mate .

5. Audit-proof your business

Use the ATO’s Record-Keeping Evaluation Tool to check your systems regularly. This preps you for BAS, ATO audits—or just calmer minds.

What you should do: Do a quarterly audit. Fix gaps early, don’t wait for ATO fireworks.

6. Avoid common admin slip‑ups

Issues like mismatched cash/EFTPOS, incomplete payroll entries, GST miscalculations, can be real headaches. So try these record keeping tips from the ATO.

What you should do: Reconcile daily takings, log all payments (including tips), and record everything fully. No guessing or estimating.

Stick to these steps, and you can kiss compliance issues goodbye, so when tax time hits, you’ll be on cruise control.

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