I am a BAS Agent. I have been instructed by a client's (Pty Ltd entity) accountant to process a $60,000 bonus for a working director, and $40,000 bonus for his wife, who is also an employee of the company. I have been instructed to process this through payroll using the "Overtime" STP code, as they say it is a bonus connected solely to overtime. (both are already paid 76 hr fortnight). It will therefore not attract super. I have also been told to vary the PAYG tax for both to nil.
My question:
- As per paragraph 28 and 29 of the SGR 2009/2, do I need to see clear evidence that this relates solely to time worked outside ordinary hours.
- Do I need a PAYG Variation Notice in order to zero out the PAYG Withholding.
The accountant states "The PAYG treatment has already been considered as part of the broader tax planning advice provided to the client."
As a BAS Agent, I do not want to make a false statement to the ATO by filing an STP declaration that this bonus is "overtime", or vary the tax withheld without substatiation.
Are the accountants instructions enough for me to act on?
46 views
1 replies