Calculators & evaluators

Has COVID-19 impacted your organisation? Are you downsizing your workforce? Have you considered how redundancies will affect the organisation?

CTS ETP Calculator can help reduce the stress and simplify exit calculations for your organisation.

CTS ETP Calculator is a robust software solution which can process thousands of exit calculations at a time, seamlessly integrating with outputs generated by your HR and payroll system. These features will save your HR and Tax team a considerable  amount of time and eliminate the risk of human error.

The calculator boasts the following functionality:

• Customisable for company specific termination rules to calculate the termination payout amount
• Company specific annual leave, sick leave, long service leave and RDO rules to calculate the various components of the payout to the employee on termination
• Calculation of PAYG withholding tax components on each component of the payout
• Concise employee report that can be provided to each employee to advise their after tax payout amount
• Summary report that can be used to forecast the overall cost of terminating employees.

Want to find out more? 

To learn more about how CTS can benefit your business, simply click here to email our CTS team and a team member will be in touch with you within the next business day.

The Decline in Turnover Test is a key element of the JobKeeper Payment Scheme which needs to be satisfied before an entity becomes eligible for the JobKeeper payment.

Using CTS RETo establish the relevant fall in turnover, entities need to establish if their turnover has or will likely fall in the relevant month, quarter or 6 months (if a university) relative to the corresponding period a year earlier or alternative period. Turnover is generally calculated as it is for GST purposes. Generally, it includes all taxable and GST free supplies but not input taxed supplies but there are specific adjustments for:

• Inter-entity transactions
• Capital assets (for projected turnover only)
• DGRs
• Charities
• Universities.

Allocating supplies to the relevant period is based on the time when an entity makes, or is likely to make, the supplies (the 'Strict' Accrual approach). As this may be difficult to calculate, the ATO accepts that the following approaches may be reasonable proxies:

• Method 1 – Accounting accrual (based on accounts) – Turnover recognised over the months that the services are rendered
• Method 2 – GST Attribution Basis (BAS Approach), either:
  • Non-Cash (Accrual) Attribution – Turnover, generally recognised in the month the invoice is rendered
  • Cash Basis of Attribution – Turnover recognised in the month the cash received.
• Method 3 – Income Tax Approach (if not registered for GST) – Turnover based upon income tax derivation principles.

To assist you in determining your eligibility to satisfy the turnover fall, we have prepared a complimentary ‘CTS JobKeeper Payment - Decline in Turnover Calculator’.

To use the Calculator – click on the download button below to begin downloading the Excel spreadsheet to your computer.

Please insert your estimated turnover amounts based on 1 of the following 5 options to assess eligibility for JobKeeper payments from April 2020:

• Monthly – March 2020 and March 2019
• Monthly – Projected April 2020 and April 2019
• Quarterly – Projected June 2020 quarter and June 2019 quarter
• Alternative specified period
• Universities.

The calculator will then assess the fall in turnover for the following entities:

• Entities with an aggregated turnover of less than $1 billion – 30% reduction
• Entities with an aggregated turnover of greater than $1 billion – 50% reduction
• ACNC-registered charity – 15% reduction.

Contacts 

Stephen O'Flynn

Matt Birrell

CTS REAL is a transfer pricing risk evaluator developed by SW specifically for multinational companies.

Using CTS REAL our Tax experts will perform a health check on your overseas related loans to:

• assess the transfer pricing risks
• understand the expected ATO approach
• identify ways to mitigate risk where required.

Want to find out more? 

To learn more about how CTS can benefit your business, simply click here to email our CTS team and a team member will be in touch with you within the next business day.