Category: Commercial Finance
Individual Trustee vs Corporate Trustee – Which Is The Best Option?
One of the means by which businesses and individuals can protect their assets and secure several tax benefits is the use of trusts, however, the entire process must be done correctly, which is why commercial lawyers are essential due to their knowledge and experience in helping to set up trusts and ensuring they are fully compliant with the prevailing legislation.
One choice that has to be made concerning trusts is how they are to be managed, and this normally boils down to choosing whether a corporate trustee or an individual trustee is to carry out that role. Each of these choices differs in several ways which has implications for trust beneficiaries so we thought it would be useful to outline some of the relevant facts.
The Four Important Roles Relating To Trusts
Whenever a trust is created, there are normally four entities that play a key role in its creation and management. These four key players are:
Appointor: The appointor has the right to nominate trustees and also remove them should it be deemed necessary. This means that in terms of whether an individual or corporate trustee is appointed, it is within their power. When the trust is being created for an individual it is usually them who has the role of appointer.
Read FullUnderstanding Your Super Obligations As An Employer
As a business owner, employing your first staff member and paying your first wages can be a daunting prospect. While a lot of people choose to use registered accountants to get themselves started, you really don’t need to. As long as you follow the instructions set out by the Australian Tax Office (ATO), paying your first wages is a relatively simple process.
Accountants Perth advise however, you do need to be aware of your superannuation obligations. Unfortunately, a lot of employers make mistakes when it comes to paying super, and these mistakes can end up costing a lot of money in ATO fines and penalties.
So, what are my super obligations?
We recommend you check with your lawyer, Commercial Lawyers Perth, because as an employer in Australia, you usually need to make super payments for all employees who are 18 or older, and who earn at least $450 per month. This isn’t a hard and fast rule, so make sure that you do your research to find out what is appropriate for your circumstances. If you are confused, a simple phone call to the ATO can help you figure things out.
Currently, you have to pay a super contribution of 9.5% of an employee’s earnings into their nominated super fund. Note from Financial Planner Perth, that you can’t deduct super contributions from an employee’s wage – they are additional payments above and on top of their normal hourly rate.
If you don’t already know where your employees want you to pay their super to, make sure that you ask them for their account details. If they don’t have an existing super fund, you will need to open an account for them in a basic fund, and pay their contributions into that. Payments have to be made at regular intervals – usually quarterly – and must be made before the due date to avoid financial penalties.
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