Payroll Tax – Once your gross wages plus superannuation paid to your employees goes over $1,100,000 a year or $91,666 a month you may be liable for payroll tax of 4.75% on that figure.
The payroll tax rate is only on the gross wage plus super over the $1,100,000 and there are a number of certain employees and contractors wages that can be removed from these calculations such as apprentices, people who are employed for less than 90 days, and people who are employed for an unusual contract of employment not normally required for less than 180 days.
This is where you have to be clear whether each individual is an employee or a contractor.
Don’t worry – we know the rules and we know when you need to be looking at paying this tax and as part of our service to you we will calculate and lodge these for you when they are due. It was once a monthly obligation but now if you are a small business you are eligible for a six monthly lodgement.
Tax & Compliance