Business Tax Services - Payroll Tax

As the majority if entities employ staff, payroll is usually one of their largest expenses. It can be of either a weekly, fortnightly, or monthly nature. With regards to payroll, the employer must take out any PAYG withholding tax from the employees' salaries/wages as applicable - this is submitted to the ATO.

The payroll tax is imposed on wages that are exchanged from the employer to the worker, and is generally applied to the annual payroll of employers/grouping of linked employers. The amount of payroll tax that is payable varies and is determined on a state to state basis. There are issues that define the liability of the employer, and these may also be different amongst the various states and territories. These issues include:

• What makes up 'wages' for the sake of payroll tax

• Varying tax-exemption thresholds for wages

• Who is classed as an employee

• The rate of payroll tax used

Employers should usually lodge their payroll tax returns on a monthly basis, and pay any tax they have outstanding to the appropriate taxation office within 7 days after the end of the month that the wages were paid in.

In all regions, except for WA, it is compulsory to complete and lodge a reconciliation between the payroll tax paid and payable at the conclusion of every financial year - 21st July (except for the ACT: 31st July). It is at this stage that the tax refund/payable is worked out.

The only case in which payroll tax is applicable is when the total of the employer's taxable wages paid is more than the yearly wage threshold - if their wage is lower than this threshold, they do not have to pay the tax. As soon as their total wages go above this amount, the full tax is applicable to the amount that exceeds the limit.

The world of tax can be extremely complex and if obligations are not adhered to it can often become quite stressful, not to mention costly. The accountants, lawyers and tax agents at The Quinn Group are able to assist you with all tax and ATO related matters. For advice or more information contact us now by submitting an online enquiry form or call 1300 QUINNS or on +61 2 9223 9166.

Back to Business Tax Services

The Quinn Group - Providing the Total Solution

As both a legal and accounting firm The Quinn Group are able to offer business legal and accounting services in one location. Visit our Business Legal Services page to see our range of legal services available to your business.

Visit our Business Accounting Services page for more information on the wide range of Accounting Services that The Quinn Group can provide to you as an individual.

View all our office locations to find The Quinn Group office nearest you, or call us on

1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.

Whilst we have 5 offices located in Sydney, we are also able to meet you at location convenient for you. Additionally, we have web and teleconferencing available for regional, interstate or international clients.