A big stress for startups we come across are all the different tax requirements they need to be on top of.
Last month, I wrote an article for leading startup magazine, Shoe String on some of the key requirements which startup founders need to worry about.
- Registering for GST – when do you need to start worrying about GST? You need to register for GST if your 12-month turnover or anticipated 12-month turnover is $75,000 or more
- Tax & Hiring staff – when it comes to hiring staff, you need to provide staff with a Tax File Number Declaration Form, as well as assessing whether to pay superannuation, how much superannuation to pay, and how much tax must be withheld from their wages.
- Superannuation – a mistake a lot of startups make is in thinking that superannuation is not payable for casual staff. This is not right. The same superannuation requirements apply for casuals and permanent employees.
- BAS – the first step is working out how often you will be lodging your BAS; annual, monthly or quarterly. Most of the startups we work with at Nudge are on a quarterly cycle. Your cycle depends on how much your annual revenues are. It’s then important to decide if you want to be on a cash or an accruals basis – this means will your GST be based on when you send/receive an invoice, or when the cash is actually paid/received.
- Tax Returns – the important thing to work out first is what tax return needs to be prepared for your startup. This will be based on your business structure. If you are a sole trader, your business information is included in your personal tax return and no separate tax return needs to be prepared for your startup. However, if your structure is a partnership, company or trust then a separate return needs to be lodged.
The full article is available on the Shoe String website via this link
At Nudge, we take care of all these requirements as part of our fixed monthly packages. This means you don’t need to stress about tax, and can get on with growing your startup.