Payroll outsourcing is the process when a company gives the responsibility of managing its payrolls to an outside company or individual in order to avoid dealing with the process themselves. Usually those agents are trained to follow this process and provide the customer with a better payroll services. As a result of giving tax and payroll advice, many outsource payroll providers become BAS agents directly or indirectly. So if you think that you may be giving such services you may want to register as a BAS agent.
But first, what services are you providing?
According to the Tax Agents Services Act (TASA), payroll outsourcing can be viewed as BAS services. Those are usually centred around providing advice and determining the clients PAYGW liability. They can also provide communication on behalf of the client with the Commissioner around issues of PAYGW. A BAS agent is also responsible for providing advice on and preparing the clients’ documents for the tax office. Read more information about BAS services https://www.tpb.gov.au/TPB/Register/0320_BAS_services.aspx
Registering as BAS agent
If you find that you are providing one or more of services to your client for a fee or as a outsource payroll provider then it is important that you register as a BAS agent. There are different options and benefits to registering, primarily to avoid any associated fines and penalties if you are ever caught. To register, you have to apply to the Tax Practitioners Board and meet certain qualifications around your knowledge and your legal standing. Registering as a BAS agent can be done as an individual, a company or as a partnership. Click here to register BAS agent.
If you provide individual BAS service, you must apply and get accepted onto to the Tax practitioner Board, based on a series of criteria on your character, education and experience. Check Payrollserviceaustralia.com.au for more information.
First of all, you must be a proper person and fit to do the job, secondly, you must have the proper education of at least certificate IV in related fields such as accounting or bookkeeping. Finally, you must prove that you have at least 1000 hours of relevant working experience.
The conditions to be accepted as BAS provider for a company are similar to those of an individual. As is the case with individuals, directors in a company must be fit and proper people in order to provide BAS services. In addition to that the company must have a sufficient number of qualified people. While this number is not specified directly, you will need to prove that your company as the required workforce to conduct and follow up on those services.
The conditions for registering as a partnership BAS agents are very similar to those of a company. All directors must be fit and proper people, and the partnership as a whole must have a sufficient number of qualified people to do the job.
Remember that you can be faced by huge fines and penalties if you are providing BAS service without the proper registration. Check Payrollserviceaustralia.com.au for more information to see if you are providing those services and what you need to do register.