The EOFY is a stressful time for everyone, including your staff, who have to submit their tax too. Support them during this time to make sure they know they are not alone, by providing them with useful resources and tips. Providing help like this doesn't go unnoticed and allows staff to feel a sense of value and builds mutual respect.
It's not an easy gig working in the hospitality industry with the long hours and being on your feet all day long, it can be both physically and mentally exhausting. Show your staff you value their ongoing hard work by helping them get the most out of the EOFY and put some cash back in their pockets.
Provide your staff with materials and resources so they can look up best practices and get the most out of the EOFY. There are many tax deductions that staff could be eligible for that they may not be aware of, so point them in the right direction.
You can send information published by reliable sources such as:
Next time you speak to your accountant, ask if they have any tips you could note down to send to staff. Efforts like this are always much appreciated. Through actions like this staff feel you have their best intentions at heart and want to help you in return. A stronger loyalty is built and results in more reliable and hardworking staff on your team.
Not only can your business claim deductions back for tax purposes but so can your staff, putting a large bundle of cash back in their pockets. There are certain expenses that occur for hospitality industry employees that they can claim back on their tax in line with terms and conditions. The ATO has created an app that makes it easy to keep track of these expenses. This is a great example of a useful resource to send to staff that will help them for tax time making the process quicker and easier for them.
To claim a deduction:
There are many items that hospitality staff may be able to claim back on their tax, for a comprehensive list check out this ATO list. However, here's a quick summary of popular claims in hospitality we have put together for you. Remember even if some claims may be seen as small they all add up over the year, so it's worth submitting all claims no matter how big or small.
You can be reimbursed for purchase costs, hire, repairs and laundry of:
TIP: Many businesses have sales around EOFY if staff need to buy a new uniform or need to invest in any work-related expenses, it would be a good time to buy these items discounted and to claim on their tax back to save them some extra cash.
If you incur car-related expenses to perform work-related duties then you can claim a deduction.
These car-related expenses can be recorded in two different ways:
PLEASE NOTE: You generally cannot claim expenses considered private such as travelling to and from your regular workplace.
You should be encouraging your staff to always be learning and striving for personal improvement. This doesn't only benefit themselves but also benefits the business allowing for a higher standard of service to be provided.
Self- education expenses can only be claimed back when the study/course is directly related to your staff’s current hospo position. Some of these eligible expenses include:
Equipment such as chef knives, repairs and their insurance can be claimed back. It’s important to note they cannot claim any tools or equipment that has been supplied by their employer.
As an employer you need to provide all staff with a PAYG payment summary which shows how much you have paid them for that financial year and how much has been withheld for tax. This is usually to be sent out by the 14th of July. However, you don't need to provide payment summaries for the information that you report and finalise through Single Touch Payroll. It’s important to review employees' details before sending out the PAYG payment summary and making sure all is up-to-date.
Celebrate this EOFY with your staff and recognise the hard work they have put in this financial year. This also makes for a good opportunity for team building and helps to improve the staff's morale, further building and strengthening connections.
With one of the biggest staffing crises in a long time, this is a time to come together and celebrate your staff members who have stuck around during these hard times - being understaffed and navigating through the pandemic. With the extreme pressure, which many hospitality employees know too well, this is a time to relax and enjoy one another's company and achievements.
It benefits your staff to receive their superannuation payment before the EOFY. This means you need to make the payment at least a week before the 30th of June to ensure the funds have left your account and hit your employee's account.
Staff may also be eligible to receive a super boost from the Government if they pay a little extra into the super before EOFY. This could result in receiving up to 50c for every dollar paid into the super account, up to $500.
Providing employees with some extra assistance during the EOFY period is a small step you can take to show your support and respect. This can help to build better relationships in your workplace and increase staff morale levels, benefiting everyone.