As an employer in the building and construction industry, you must meet your payroll tax obligations.
Some businesses in this industry do not declare their contractor payments as liable wages resulting in significant payroll tax liabilities.
You should regularly review your building and construction business to determine the right payroll tax treatment on contractor payments.
If your taxable wages exceed the monthly payroll tax threshold in the current financial year, or previous financial years, you must register. When calculating your taxable wages, include payments made to liable contractors.
If you have not declared all liable amounts in your monthly payroll tax return for the current financial year, include these additional amounts in your annual reconciliation return. Please note the due date for the 2019/20 Payroll Tax annual reconciliation has been extended to 30 October 2020.
If you did not declare all liable amounts in previous financial years, contact us to make a voluntary disclosure. Voluntary disclosures attract a reduced level of penalty tax compared to cases where we identify the understatement.
If you have a question about the building and construction industry and cannot find the answer on this website, contact us .