Category: Payroll | employer tax filing payroll Tax A Sured Pty Ltd – let us help you file
Employers' Responsibilities:
As per Paragraph 13(1) of the Fourth Schedule, every employer who deducts or withholds any amount by way of employees' tax during a specified period is required to furnish an employees' tax certificate to each employee or former employee. This filing season is usually from April to May of each year. This certificate IRP5, in a form approved by the Commissioner, must detail the total remuneration paid to the employee and the sum of the amounts of employees' tax deducted or withheld during the said period.
The specified period referred to can either be the standard 12-month period ending on the last day of February of any year or an alternate period chosen by the employer. The alternate period, if opted for, should not exceed 14 days before or after the last day of February, unless otherwise permitted by the Commissioner.
Employers must ensure the timely delivery of these certificates. If the employer has not ceased to be an employer in relation to the employee, the certificate must be delivered within 60 days after the end of the relevant period. If the employer has ceased to be an employer, the certificate must be delivered within 14 days of ceasing to be an employer.
Additionally, employers should be aware of the provision regarding casual employees. If directed by the Commissioner, employers may be deemed not to have ceased to be an employer in relation to certain casual employees who are likely to be re-employed from time to time.
Employees' Rights and Responsibilities:
On the other hand, employees have a duty to ensure they receive the required employees' tax certificate within the stipulated time frame. If they haven't received it, they should promptly request it from their employer.
It's crucial for employees to keep track of their tax documentation and ensure they have received all necessary certificates for filing their tax returns accurately and on time. Failure to obtain these certificates can result in delays or inaccuracies in tax filings, which may lead to penalties or fines.
In conclusion, understanding the duties faced by employers regarding the furnishing and obtaining of employees' tax certificates is essential for maintaining compliance with tax regulations. By fulfilling these obligations accurately and in a timely manner, employers can contribute to a smooth tax filing process for their employees while avoiding potential penalties.
