If your small business has employees, you may be obligated to pay payroll tax. Payroll tax and salary tax are different, so they require separate processes with associated deadlines.
Get help from our accountants at Wilson Porter to come up with the best payroll tax plan for your business.
Payroll tax is a state-based tax that is assessed on your business’s total wages when they exceed the payroll tax threshold.
Each state or territory has its own payroll threshold. You can check the threshold for the states or territories in which you have employees on the associated revenue office website.
The definition of “wages” provided by the State Revenue Office is very broad. It encompasses not only gross wages but also allowances, superannuation, fringe benefits and sometimes contractors. The OSR can also “group” associated businesses under one assessment.
It’s up to employers to determine whether they need to register for payroll tax returns. If you fail to fulfill your payroll tax obligations, even unintentionally, the OSR can raise assessments that may go back to the date your wages went above the threshold and add penalties and interest.
To ensure you are complying with state payroll tax laws, and to avoid paying more than you have to, speak with accountants at Wilson Porter.
At Wilson Porter, we know payroll tax law is complicated. When you work with us, we gain a fundamental understanding of your business and payroll system so we can help you stay compliant and save money.
When you do your payroll tax planning with us, our accountants will:
If you have employees that receive benefits, you might not realise these contribute to the employees’ wages in the eyes of the OSR. Many factors contribute to the total wages you pay your employees, and we can help you determine whether your wages exceed the threshold for your state or territory.
A number of payments are included within the wages you pay — some that you may not even expect. For example, the funds that you contribute to your staff’s superannuation are subject to payroll tax. This includes the superannuation guarantee as well as any portion of their salary they choose to sacrifice.
You may even owe payroll tax for services you paid to people who are not on your company’s payroll. For instance, if you hire a contractor to do work for your business, you may owe payroll tax for the money you pay them. Additionally, if you outsource an employment agency, you could owe payroll tax on the money you pay for that service.
Since state and territory thresholds vary, it may be difficult to know how much you owe if you have employees in multiple states. Our accountants can identify where you owe payroll tax and where you do not, and help you devise the right plan to lodge your payroll tax returns.
Once our accountants have determined that your business owes payroll tax, you’ll need to register your business before you’re able to assess your liability and lodge a return.
Our accountants will walk you through every step of the registration process. We’ll make sure you register in every state or territory where you have employees and answer all of your questions about the process so you can learn along the way. Our accountants protect your business by ensuring you comply with state payroll tax laws while ensuring you pay the correct amount of tax.
Your liability determines how much you owe. It includes any payroll tax you owe this year as well as payroll tax you’ve neglected to pay in years prior.
Our accountants at Wilson Porter will assess the taxable wages you pay as well as liabilities of the past to determine how you can best comply with state laws. Plus, we’ll walk you through every step of the process so you gain a better understanding of why your business is liable and how you can move forward strategically. Once we determine your liability, we will develop a plan that is best for your business.
Once we’ve crafted a plan for your payroll tax, we don’t just send you on your way. Our accountants will help you prepare and lodge your payroll tax returns.
Because our accountants help you every step of the way, you can have peace of mind knowing that you have compiled with state laws.
Business owners are responsible for paying payroll tax. Payroll tax is sometimes confused with salary tax, which all working people have deducted from their salaries. However, business owners over their particular state’s wages threshold pay a tax on the labour that helps their organisation grow and thrive.
The good news is that payroll tax is an allowable income tax deduction.
Payroll tax can be complicated, especially because state payroll tax laws are not entirely uniform across the country. Even just checking to see if you owe payroll tax might be confusing, and you want to make sure that your business is always complying.
Wilson Porter can help you make sure you are saving as much money as possible within the intent of the law. By guiding you through every step, we give you peace of mind in knowing you did everything you could to help your business.