How does the bookeeping work when attributing the psi income to the individual would the income be coded against an expense called PSI in the companies p and l
Hello davie, a question. If you recieve $100,000 in psi income and the company only receives this and has one sole director/employee, has $4000 in allowable psi deductions, and pays let's say $98000 in wages. Would this be what they call a psi net loss? There would be a loss of $2000 right. Would the correct way to declare this on the company tax return is still filling out section 14 psi and then reconciling $2000 as a deduction to the individual. Etc the company should not have a $2000 net loss on its company tax return.
Hey, it is best to engage an accountant for this question as we cannot go into detail on this on YT without knowledge of the financial data and situation. Thank you
Hello, if the PSI rules apply and you are a PSE (Personal services entity) if you pay wages before the 14th day after the end of the PAYG period, does this have to include superannuation? I've heard it's only wages after 14 days after the PAYG period that actually have SG liability. Is this true?
So if your a sole trader plumber who's invoices are more than 50% for your labour you would be classified as psi. So if you hire someone completely at arms length to do admin bookeeping etc those wages are not deductible?. Or even if your invoices are psi but you meet the requirements of a psb the wages would be deductible
I believe what they meant is that is not deductible if it is an associate of yours like your partner, if it is a random person just hired as an employee, it would be ok to put all their payments as wages to offset the income
I'm wondering at what annual income is it beneficial to do things under a PSI. As a software support technician / construction Draftsman, all my work is done from my PC using my know-how. I'm new to going full-time sole trading. My accountant says everything has to be done under my own name but there has to be an income threshold where I go looking for a better accountant.
You forget to mention the below You must be paid to produce a specific result. You are required to provide equipment or tools (if required). You are required to fix mistakes at your own cost. If you pass all the above then you are not categorised as PSI
Could you please clarify. What about in this case.. I build custom spreadsheets for companies and they pay me a subscription to upkeep and update these spreadsheets. If I make a mistake I have to fix it at my own cost. Does that count as PSI?
Thank you very much. Your video is very detailed
How does the bookeeping work when attributing the psi income to the individual would the income be coded against an expense called PSI in the companies p and l
Hello davie, a question. If you recieve $100,000 in psi income and the company only receives this and has one sole director/employee, has $4000 in allowable psi deductions, and pays let's say $98000 in wages. Would this be what they call a psi net loss? There would be a loss of $2000 right. Would the correct way to declare this on the company tax return is still filling out section 14 psi and then reconciling $2000 as a deduction to the individual. Etc the company should not have a $2000 net loss on its company tax return.
Hey, it is best to engage an accountant for this question as we cannot go into detail on this on YT without knowledge of the financial data and situation. Thank you
Hello, if the PSI rules apply and you are a PSE (Personal services entity) if you pay wages before the 14th day after the end of the PAYG period, does this have to include superannuation? I've heard it's only wages after 14 days after the PAYG period that actually have SG liability. Is this true?
So if your a sole trader plumber who's invoices are more than 50% for your labour you would be classified as psi. So if you hire someone completely at arms length to do admin bookeeping etc those wages are not deductible?. Or even if your invoices are psi but you meet the requirements of a psb the wages would be deductible
I believe what they meant is that is not deductible if it is an associate of yours like your partner, if it is a random person just hired as an employee, it would be ok to put all their payments as wages to offset the income
thank you
I work as massage therapist but as a contractor.
Does PSI apply to me?
I'm wondering at what annual income is it beneficial to do things under a PSI. As a software support technician / construction Draftsman, all my work is done from my PC using my know-how. I'm new to going full-time sole trading. My accountant says everything has to be done under my own name but there has to be an income threshold where I go looking for a better accountant.
have a watch of our video called when to setup a company structure.
But its probably best you book in a free consultation with the team at boxas.
You forget to mention the below
You must be paid to produce a specific result.
You are required to provide equipment or tools (if required).
You are required to fix mistakes at your own cost.
If you pass all the above then you are not categorised as PSI
Could you please clarify. What about in this case.. I build custom spreadsheets for companies and they pay me a subscription to upkeep and update these spreadsheets. If I make a mistake I have to fix it at my own cost. Does that count as PSI?
#PSIbase
#PSIbase instead!