ATO, PAYG and Tax Return Query

RyanMK on 10/06/2019 - 13:01
Last edited 10/06/2019 - 13:04

I have a friend who works for a small company (less than 10 employees). She suspects they have not been lodging the PAYG they withhold to the ATO. She's worried that when it comes to tax return time in July, she would not be eligible to get any money back (we've done a calculation and she should be due a decent return) as the ATO has not received the money.

I'm not a tax/payroll expert, but I would have assumed they the ATO will return her whatever she is due and chase up what is outstanding with the employer themselves? Or am I wrong?

If it matters, the employer is not using Single Touch Payroll.

Also, her payslips does show a PAYG line with the amount withheld.

Financial Tax Return

Comments

  • altomic on 10/06/2019 - 13:13

    what did the ATO advise your friend when she called them anonymously?

    why does She suspect they have not been lodging the PAYG they withhold to the ATO?

    • RyanMK on 10/06/2019 - 13:16

      She hasn't as it was only something that was brought up when we had lunch yesterday.

      It's on her TDL's for tomorrow, but as it seems to be stressing her out quite a bit, thought I'd get some ideas from the good old OzB brain trust ;)

      • iforgotmysocks on 10/06/2019 - 17:59
        +14

        You did the right coming to us first. It's what the ATO would have suggested you do anyway

  • tsunamisurfer on 10/06/2019 - 13:22
    +14

    If her payslips show PAYG witheld this means that the employer has taken the PAYG aside and therefore that the responsibility to remit the PAYG payments to the ATO. There are very harsh penalties for witholding PAYG and keeping it.

    When your friend lodges their tax return with the PAYG Summary provided (stating the PAYG witheld for the year), the ATO will assess based on those numbers.

    If by then the company has not remitted the PAYG or done their Super, there is going to be some explaining to do by the employer.

    • Hardlyworkin on 11/06/2019 - 13:56

      Exactly, and if she doesn't get a PAYG statement she can still do her tax based in her pay slips. With everyone soon to be real time reporting, PAYG statements will no longer be needed.

  • Seraphin7 on 10/06/2019 - 15:45
    +1

    Given the PAYG deductions from the payslips (appear) to be in order, what is the basis of the suspicion?

    As noted above, this is a serious allegation that if true may have significant consequences.

  • p1 ama on 10/06/2019 - 15:53
    -1

    She suspects they have not been lodging the PAYG they withhold to the ATO.

    That's a very serious allegation against the company. I wouldn't throw around these accusations lightly.

    If this is her suspicion, then it's her civic duty towards herself, her fellow employees and the rest of the Australian public to report this to the ATO immediately.

    • chumlee on 10/06/2019 - 19:23
      +1

      No names mentioned so what's the problem?

  • brendanm on 10/06/2019 - 17:14
    +1

    How would we possibly know if the employer has payed the tax? Why would she even think this was the case? Sounds like much ado about nothing.

  • [Deactivated] on 10/06/2019 - 17:49
    +2

    Honestly, she should check if she's been paid super (it's only due quarterly, eg April - June is not due until the end of July). But businesses that are being dodgy stop paying super long before they stop paying PAYG to the ATO. If she's being paid Super and has Payslips showing tax withheld I wouldn't worry, it's not her problem.

    • Beaches on 11/06/2019 - 11:06

      Agree with Jkart. Best place to start is checking her super contributions have been paid by the employer.

  • MITM on 10/06/2019 - 18:02
    +1

    Just put the tax return in as normal and don't worry - it will auto fill the group certificate/PAYG payments the ATO has received. And if not the ATO will discover/advise her then. From there she can chase up Super contributions also with ATO help.

    How real/established is the business she's working for ? Are they "FlyByNighters" ?

  • serpserpserp on 10/06/2019 - 19:19
    +2

    Loving this new OzTax forum.

  • chumlee on 10/06/2019 - 19:22
    +1

    Not your friends problem. ATO will chase employer

  • RyanMK on 11/06/2019 - 07:02
    +2

    To sum up the answers to most of the questions above, it's just a suspicion on her part. She does not have cold hard evidence. Her suspicion stems from the chat she has with the accountant, the fact that the company has been loss making for a while, has cash flow issues and so on.

    With that being said, she is still being paid her super. And based on the responses above, it looks like she does not have too much to worry about.

    Thank you to everyone who took the time out to respond. Much appreciated!

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