It’s calculated on the amount of wages you pay per month. You need to pay payroll tax if your total Australian wages exceed the exemption threshold in your state or territory – this varies between states but for this blog we’ll look at NSW.
In NSW it’s the friendly folk at the NSW Office of State Revenue that look after payroll tax and thresholds. If you’re in another state or territory you can find your State Revenue Office details here.
Rates and thresholds for 2013/2014
Every year the State Revenue Office recalculates the payroll tax thresholds, so it’s important you stay up to date with the most current information.
For the 2013/2014 financial year:
- The payroll tax rate is 5.45%.
- The payroll tax threshold for 2013 – 2014 (July – June) is $750,000.
Broken down by month the monthly threshold amounts for 2013/14 are:
Days in the month
This means, if the amount of Australian wages you pay to your employees exceeds the above monthly threshold you need to pay the Office of State Revenue (as at January 2013) 5.45% tax on your monthly wages that exceed the payroll tax threshold.
So what? I’m under the threshold!
If you’re under the threshold while you may not need to pay, there are still things you need to be aware of. Every business owner should make sure they know:
- the monthly threshold exemptions and the payroll tax rate; (tick! Just by reading this blog you’re up to date.)
- your business’s monthly wage figure. If you’re skating close to the threshold you need to make sure you and your payroll person know what to do next.
I’m nearing the threshold. What next?
If you are skating close to the threshold you need to have enough money put aside to pay (or save for) an impending tax bill – straight away. So for 2013/14 that means 5.45% of your monthly wages, ready to pay. Once you reach the threshold you have 7 days to register for payroll tax in your state or territory.
If your estimated tax payable in a financial year is:
- $6,000 or less, payment can be made on an annual basis
- more than $6,000, payment must be made on a monthly basis.
- To register for payroll tax will need to complete an application for registration online.
Does Payroll Tax muddle your mind? Give us a call to see how we can help you.
Or check out our website for more information on payroll.
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