As an employer, do you provide car parking fringe benefits ?

Very broadly, a car parking fringe benefit may arise for each day on which you (the employer) provide a car parking space for the use of an employee.

Specifically, a car parking fringe benefit arises during a fringe benefits tax (FBT) year only if all of the following conditions are satisfied:

  • a car is parked at premises that are owned or leased by, or otherwise under the control of, the provider (usually you as the employer)
  • within a one-kilometre radius of the premises on which the car is parked, there is a commercial parking station that charges a fee for all-day parking, which is more than the car parking threshold
  • the car is parked for a total of more than four hours between 7.00am and 7.00pm on the day
  • the car is owned by, leased to, or otherwise under the control of, an employee, or is provided by you
  • the parking is provided in respect of the employee’s employment

 

if you do provide fringe benefit(FBT) to employee, please be aware that the FBT return 2014 is due to lodge by 21st May 2014(if lodge by paper), also it is the final date to appointing a tax agent to get extended lodgement days.

If you need any sort of help in regard to FBT, please contact us at 02 9799 1327 or email to:  felicia.tax@adeptaccounting.net.au 

  • the car is parked at or near the employee’s primary place of employment on that day
  • the car is used by the employee to travel between home and work (or work and home) at least once on that day
  • the commercial parking station referred to above must also, on the first business day of the FBT year, charge a representative fee for all-day parking that is more than the car parking threshold.
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Record keeping in the retail cafe industry

The cafe industry has been identified as an industry with a higher risk of omitting income from cash sales. As a result, businesses in the industry are at higher risk of audit or review.

If you are subject to an audit, good record-keeping practices can help you to demonstrate that all sales and expenses have been correctly recorded. We always take into account the individual circumstances of each business we review, based on records maintained by that business.

This fact sheet has been developed to provide support and assistance to cafe businesses, by detailing what records you need to keep for your daily business transactions.

 

When we say cafe, we are also referring to businesses operating as a coffee shop, hybrid cafe, restaurant, food court, fast-food or takeaway food outlet.

 

Why keep records?

It is a legal requirement for businesses to keep records. They must be kept:

    • in English or in a form that we can readily access and use to work out the correct amount of tax you are liable to pay

    • for five (5) years after they are prepared, obtained or the transactions are completed – whichever occurs latest.

      Your record-keeping system should allow a tax officer with accounting skills to work out a business’s tax liabilities within a reasonable time.

      Where a business fails to keep proper records, the risk of not being able to substantiate their reported income is greater.

      Failure to keep accurate records to support reported income can result in administrative penalties, court-imposed fines, and default assessments.

       

       

      Recording income

      Businesses must keep records that detail each sales transaction as it occurs. Each sales transaction must include the amount and date of the sale.

      You should:

    • Record each individual sale through the cash register or POS system.

    • Perform ‘Z-totals’ or generate a summary record at the end of the day for each cash register.

    • Conduct a daily sales reconciliation between the ‘Z-totals’ (or summary record) and cash in the register, taking into account cash taken to pay for business expenses (including staff wages) and personal use.

    • Transfer daily sales total into a cash receipts book (or electronic equivalent).

    • Perform bank reconciliations between the bank statements and cash receipts book (or electronic equivalent) at least monthly.

    • Keep all business records for five years. The exception is the till tape rolls, which you may keep for one month, provided you have reconciled the ‘Z-totals’ (or summary records) with the individual records and the bankings for that period.

      Unsound record-keeping practices

      These include:

    • Cash registers operated without a till roll.

    • Trading with the register drawer left open.

    • Failing to record each transaction accurately – for example, ringing up sales as a ‘No Sale’.

    • Failing to record each individual sale and only recording daily sales totals in their record-keeping systems.

    • Not accounting for cash payments for wages, business expenses and personal drawings in the recording of daily sales.