Rewarding Your Team this Holiday Season? Here’s What You Need to Know! 

The holiday season is upon us, and it’s a time filled with joy, laughter, and a bit of stress—especially if you’re a small business owner. Between organising the office Christmas party and sorting out end-of-year finances, you’ve got your work cut out for you. But don’t worry! We’re here to help you make sense of it all so you can enjoy the festivities without a hitch.

Staff Bonuses: More Than Just Cash

Bonuses are a fantastic way to boost morale and show appreciation for your team’s hard work. While cash is often the go-to, there are other creative ways to reward your staff. Consider gift cards to their favourite restaurants, extra leave days, or even a personalised gift that shows you care.

Tax Implications of Bonuses

When it comes to tax, bonuses are a bit more complicated than regular wages. They’re considered a form of income and are subject to withholding tax. The rate of this withholding can vary depending on the size of the bonus and the employee’s regular income. It’s crucial to consult the ATO’s guidelines or seek advice from your accountant to ensure you’re withholding the correct amount.

At Accounts All Sorted, we know how complex tax matters can be, especially when it comes to rewarding your team. We’re here to help you navigate the twists and turns, ensuring you’re compliant while also keeping your staff happy.

Gifting Your Staff

Thinking of gifting your employees or clients? Be mindful of the Fringe Benefits Tax (FBT). The good news is that ‘minor benefits’—those costing less than $300—are generally exempt from FBT.

This means you can give gifts like wine baskets, food hampers, high-end stationery, or even small tech gadgets without worrying about extra taxes. Just make sure to keep detailed records of these transactions for compliance.

Planning Ahead

Don’t wait for the holiday rush to start planning! Here are some tips to keep your accounts sorted before the holiday festivities:

• Set a budget for staff bonuses and gifts
• Use a single account for all transactions to make tracking easier
• Set reminders to review any subscriptions or recurring expenses that might auto-renew during the holidays

The holiday season doesn’t have to be stressful for small business owners. With a bit of planning and an understanding of tax implications, you can reward your team and celebrate the season without any financial headaches!

Let Us Sort It Out For You

At Accounts All Sorted, we are here to help you take the guesswork out of your financial planning, especially this holiday season. Contact us today to discover how we can simplify your staff bonuses, bookkeeping, and payroll, so you can enjoy the holidays without the stress!