Workplace closures other than Public Holidays
If you’re planning on closing your office, retail premises or workshop for any length of time during the holiday season, you must give your staff at least 28 days’ notice of your intention to close – and you must do it in writing!
The WA public holidays over the period are:
Christmas Day - Wednesday 25th December
Boxing Day - Thursday 26th December
New Year’s Day - Wednesday 1st January
If you’re closing your premises for any time other than public holidays, you must officially let staff know what you are planning and with plenty of notice. You should advise them that they will need to take holiday pay throughout this period. If an employee does not have sufficient leave to cover the shutdown, you may need to request the employee agrees to leave without pay. If they don’t have enough leave, and do not agree, you will have to pay them as if they worked.
If you decide you only want minimal staff levels around this period, again, advise your staff of your plans with plenty of notice, so they can let you know if they do or do not wish to work, and you can schedule staffing levels appropriately.
Some businesses, in particular retail outlets or hospitality venues, may require extra staff to work around this time, or even on these public holidays. Once again, be prepared and give your staff plenty of notice, as well as the opportunity to request leave or agree to work on the scheduled days. It’s also important to check your award and ensure you are paying staff at the correct rate during this period.
Be aware of when pays are due throughout this time and make plans to ensure compliance. You can always chat to your bookkeeper, or us at WestBAS for expert advice around employment or pay issues.
Planning a Christmas Celebration? Here’s what you need to know
Everyone loves a good Christmas celebration, and you often want to thank your employees with a nice gift too, but with so many variables about whether you can claim the expense as a business deduction, as well as the FBT implications, it really is important to understand how to allocate these expenses correctly.
Hang on … did somebody say FBT? Yep, when the words Fringe Benefits Tax are mentioned, these transactions become the domain of your tax agent or accountant. What your bookkeeper can do though, is to ensure that the transactions are allocated correctly so the accountant can easily find them in the Profit & Loss at the appropriate time, and know they refer to Christmas celebrations or gifts.
The very specific guidelines around Christmas celebrations can be a minefield for small business owners; there are even different rules if the party is held within the workplace or at an offsite location, like a restaurant or entertainment venue. Then, to throw another spanner in the works, if you want to include your clients and suppliers with gifts and/or a party … the rules change again.
Probably the most important thing you should know about all of this, is that the cost of the party or gift cannot be claimed as a deductable business expense unless you spend over $300 per staff member in entertainment, PLUS $300pp for a gift, (these are treated as two separate transactions). And remember, if it’s not a deductible business expense, then you can’t claim back the GST on these transactions either.
Without wanting to cause overwhelm, or a dampen the holiday season fun, with all the different variables and situations, the purpose of the information in this blog is for you to be aware that you may not be able to claim your Christmas party and gifts as an eligible expense, and that there may be FBT implications if it is classed as a business expense.
Again, the important thing is to allocate these transactions correctly, so talk to your bookkeeper or reach out to us at WestBAS for advice.
So now you know … it’s definitely not too early to start talking about the silly season! As with all things, it’s better to be prepared and stay ahead of the curve. We are here to support you with any questions or concerns you may have.