If you’re a growing business, you should be registered for payroll tax and be familiar with the common payroll taxable items including wages, superannuation, bonuses, directors’ fees, allowances and termination payments.
As your business grows, you should regularly check that you’re still meeting your obligations. A few things to remember:
If your business becomes part of a group, you should let us know. A group can exist if there is common control, common ownership or common employees with another business. There are rules that decide if a business is grouped with another business.
Find out more about grouping.
Payments made to contractors are liable for payroll tax unless you can show that an exemption applies. Contractor exemptions cannot apply to a common law employee or if there’s an employment agency contract. Check the status of your employee with the Revenue Ruling PTA 038.
Find out more about contractors.
If some or all of your wages are paid as part of an employee share scheme, you should include these in your payroll tax returns.
Find out more about shares and options.
As your business grows, wages may get paid in various forms of third party direct and indirect payments. Wages are liable for payroll tax even if they’re paid:
Under an employment agency contract, an employment agent obtains the services of a worker for a client. All of the payments made by the employment agency for the services of the worker are deemed to be wages on which payroll tax is payable.
Find out more about employment agencies.
To help you further, read some of our case studies for grouping, contractors, shares and options, third party payments and employment agents.
If you registered for payroll tax on an annual basis, check to see if you need to update it.
If your estimated tax payable in a financial year is:
You may be able to receive a rebate under the Jobs Action Plan.
The Jobs Action Plan gives eligible businesses a payroll tax rebate when they increase the number of NSW full time equivalent employees. The rebate is available for eligible jobs starting on or after 1 July 2011 and before 1 July 2019.
For more information, read the Jobs Action Plan page.
All wages (including superannuation, allowances and fringe benefits) paid to apprentices and trainees are liable for payroll tax and must be included in your returns.
However, you can claim a payroll tax rebate on wages paid to approved apprentices and new entrant trainees who are recognised by the NSW Department of Industry.
Read more about the apprentice and trainee rebate.
If you have a question about payroll tax and can’t find the answer on this website, contact us.