Self employed 1
RTE Is showing the clients relevant year earnings but Juno isn't- and I can see Relevant year is less than next previous....what should I use to set up client?
- Estimate based on the relevant year- smaller amount
What work pattern should I use with CPX?
-Clients
-Monday to Sunday if no other held employment (works of a 7 day work pattern similar to EOS- as not abated)
What is a LTC and what should you do with these?
-A look through company is a way of structuring a company, and as a result, any earnings paid are treated as self-employed earnings. If the client is a shareholder of a look-through company then you can set them up as you normally would as a self-employed person.
-Look through company- pay tax differently
-Can be passive in nature
-Phone client to understand what their LTC is and is it active employment?
-Can often be passive in nature- Rentals, lifestyle block
-Check to see if LTC company is the SH company
-Possibly can be classed as a dual earner with SH PAYE and LTC Earnings
-If clients earnings are an active LTC only- we enter in as self employed
What happens if a client is a shareholder in multiple shareholder companies?
You can only add one company , and add all of the income under one entity ( put under the company with the highest entity)
How can we set up a client who is recently self employed with no filings?
-We can set up a client who is recently self employed on previous PAYE earnings of the previous 52 weeks prior to DOFI/DOSI
-Full time min if working full time and liable to paying full time levy fees
If not working full time or with no PAYE- We will need them to file- not an earner as no loss of earnings and nothing to base calculation on
Client has CPX but their self employed earnings which have been filed are higher- what should we use?
-CPX agreed amount. Client is paying levies to this amount.
What happens if a Non PAYE shareholder client has a NIL End of year allocation for their relevant year.
- A Nil return means the client has not received any income, and has no liable income for calculating weekly compensation.
If the client has declared no earnings for the relevant year, then there are no earnings to calculate weekly compensation and as a result there is no calculation we can complete for the client for weekly compensation.
-The exception to this is if the client has had a significant change in their business that there is now an expectation that the client will receive a salary allocation for the year that the injury happened. If this is the case, then we need to get the client to provide more information and then refer it to technical accounting services (TAS).
Are Shareholder clients eligible for the Minimum Annual Earners Levy (MAEL)
Unlike full time self employed clients Non PAYE SH have no liability to pay the minimum annual earners levy so they don't qualify for the FTM compensation like a S.Employed clients would. Only liable for LTE calculation and Is based on actual earnings
SH employees of LTC May be eligible as they are S.E employment
Name two things you should ask a client in an interim assessment?
-Privacy
-Have they filed relevant year?
-When will they?
-Have they got an accountant?
-Will the relevant year be higher or lower than next previous?
-Advance
-Overpayment risk
If a client pays a full time levy fee, but works 20 hours per week- are they eligible for FTM uplift?
- Yes
What should you do if you see a client has filed shareholder income on their IR3 (RTE) but its not showing up in Juno?
IR3 RTE
IR4 JUNO- COMPANY
IR4S JUNO- CLIENT IN COMPANY
We frequently get instances where a client has declared a shareholder salary on their personal tax return, (IR3), but the shareholder salary does not show in Juno. The most common reason for this, is that the company shareholder details schedule, (IR4S), has not been correctly filed with IRD. This document confirms the client’s shareholder salary is liable for an earner levy and not having this filed correctly means that no levy has been paid on the shareholder salary. In these instances, please seek assistance from the Technical Accounting Specialists before you proceed with payment.
Do you add ACC earnings from PWC into a clients calculation when they have CPX?
- No Clients have agreed and paid for a certain amount of cover for CPX- so we don't add any divisor changes to the calculation which may increase/ decrease WC amount.
- Checking on earner status with filings
-Filings being over 30% after DOFI/DOSI- influence over earnings
-Earnings which are negative with part time levy fees
If a client works full time only in the busy season and is paying part time levy fee's- what should we be entering onto the claim and when?
- Uplift for period client is working +30 hours per week
-FTC on end of busy period
What do you do when a client has PAYE Shareholder income and a CPX policy?
If the client is also in receipt PAYE Shareholder Income they do not have eligibility to CPX cover as this product is only for Non-PAYE Shareholder employees. This voids their CPX policy. Seek assistance from an experienced payments assessor or technical services if you come across this scenario.
What do we use for the calculation when a client has changed from self employed to shareholder?
If a client has changed from Employed to Shareholder and have not passed a balance date for Shareholder income then they are considered newly shareholder. We would calculate it based on their self-employed income.
Client has filed -$ dollars for relevant year and paying part time fees? What next?
-Client isnt eligible for FTM uplift
-Recorded $0 earnings
-Acc is for loss of earnings
-Check with TAS
If a client changed from part time to full time in the current financial year and are paying part time levy fees, what should you do?
Email the BSC and advise them what date the client has become full time- apply full time uplift if client agrees to paying any extra fees
What is Unreasonable Influence and what does it look like looking at earnings?
-- Its when Client alters their earnings for greater WC- Particularly before Injury/ DOSI-Common cases are DOSI surgery date or Wash ups
What does it look like?
*Tax returns showing unexplained, significant changes in earnings - increases
*Amended or refiled tax filing
*30% increase in Earnings (if they lodged a good time before their accident don't need to follow up)
*Profit Allocation - change between allocation with partners
*Change in earner status
*Contact TAS
What are director fees and are they included in the calculation?
This is income earned by directors for carrying out their role as Director of a limited liability company.
Directors Fees is declared to the IR at the end of the income/tax year, is available in Juno and is included in the Weekly Earnings Calculation.
Note: This income often shows under the client’s Self- Employed number in Juno but should be attributed to the Shareholder Employment Calculation