Employer superannuation contributions are considered wages and are liable for payroll tax.
They include contributions paid or payable:
If an employee makes after-tax contributions into any superannuation fund, including one administered by the employer, these are not superannuation contributions made by the employer and are not liable for payroll tax.
Any penalty component of a superannuation guarantee charge is not liable.
Employer contributions to a defined benefit fund are determined through regular actuarial valuations. These valuations include calculating the contribution required to meet the cost of accruing future benefits for existing members of the fund.
As with other superannuation contributions, payments made to a defined benefit fund are liable for payroll tax. Top-up payments to defined benefit schemes for service post 1 July 1996 are a wage and liable for payroll tax.
For more information, read Revenue Ruling PTA 040.
All contributions to superannuation made on behalf of an employee or director are liable for payroll tax. Common errors involve not including: