Cash Payments and Reporting
The Australian Taxation Office has announced that any unreported cash in hand payments made to workers from the 1 July 2019 will not be tax deductible.
In addition, any payments made to a contractor who has not provided an ABN and does not withhold tax will also not be tax deductible from 1 July.
Matthew Addison, an executive chair for the Institute of Certified Bookkeepers said that the “focus does not mean cash payments are no longer allowed but is rather about unreported payments.”
“If it is for wages then PAYG must be considered and super must be considered but you are allowed to pay in cash, as long as it is reported according to the law,” said Addison.
“The issue is about unreported cash payments. If you don’t withhold when you should, and if you don’t report when you should then no deduction.”
PaysOnline’s outsourced payroll system can help you remain compliant. Contact us today for a tailored solution for your business.
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