Christmas Housekeeping – payroll and cashflow
With Christmas at hand it is time to think about payroll and staff leave over the Christmas break. Getting ready now will take some of the stress out of payroll over this period.
Are you closed over Christmas? Do your staff need to put in leave requests for this period? If so get them in early to help with smooth processing. Discuss expectations with your staff. Those who don’t have enough leave accrued for the shutdown period will need to be informed ahead of time, in other words now. If your business is open over the Christmas period have you established who is working and who is taking holidays?
Plan ahead for payroll. You need to think about which day your payroll falls over the break period and if this is a public holiday. Staff will not be impressed if their wages don’t come in on time. Preparing payroll in advance is recommended, taking into consideration possible delays by the bank in processing payments over the holiday period.
Let your staff know exactly what date they will be paid – Christmas can be financially stressful so if you let staff know they can plan ahead.
If you are paying staff bonuses think about how much the bonuses will be; how that will affect your cash flow and start making adjustments if necessary. Make sure your current payroll system is set up to allow bonus payments in order to simplify processing.
Changes in reporting and payment dates for December:
– Payroll Tax deadline for the December quarter – 14 January.
– Super must be paid into employee funds – 28 January.
– Monthly BAS & PAYG instalments deadline – 21 January.
– Quarterly BAS & PAYG instalments (October to December 2019) – 28 February.
Cashflow is often tight over Christmas. Sales and debtor payments can slow down while your costs continue to flow. Start thinking ahead so your cashflow is managed and your Christmas is peaceful for you, your staff and your bank balance.
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