We have recently attended a talk led by the QLD Commissioner of State Revenue, Elizabeth Goli. Non compliance and non disclosure when it comes to payroll tax is still an issue.
As you all probably know, payroll tax is a complex area and if you are not 100% sure about it, you are best to leave it to professionals.
The general rules is, that you are liable for payroll tax if your taxable wages exceed the threshold of the relevant state.
The thresholds for 2018 are:
You do need to ask yourself these questions though:
– Did you know that superannuation and most allowances are included in the taxable wages?
– Did you know that if you employ across different states, you do not get to claim the full threshold for each state?
– Did you know that if you have more than 1 business entities, they most likely need to be grouped in which case only one threshold applies for the whole group as opposed one for each entity?
– Did you know that contractor payments may need to be included in the taxable wages?
– Do you know which contractor exemptions may apply to your payments?
If you are unsure about any of the above, give one of our boring accountants a call on 07 3160 7386.
You can find more information about payroll tax in our prior article Payroll tax – what are your obligations?
Over the next 2 years, the OSR will concentrate on the following payroll tax areas:
– businesses trading via discretionary trusts
– employment agencies and contractors for building and construction industries, couriers, cleaning and security
They get their information directly from the ATO from your tax returns, payment summaries, business activity statements as well as taxable payments reports. If you exceed the payroll tax threshold but do not lodge your payroll tax returns, you are likely to get audited.
It is best to come forward as their penalties and interest are very high and if you are behind few years, they may be as high as the payroll tax itself.
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