A lot of employers are not aware of payroll tax or the thresholds. Payroll tax is payable to the State Revenue Office once you exceed an annual limit however you are required to register once you exceed the monthly limit. The current rate of payroll tax is 4.95% at the time of writing this article.
| Period | Maximum Deduction | Rate | |
|---|---|---|---|
| Annual | Monthly | ||
| 1 July 2008 onwards | $550,000 | $45,833 | 4.95% |
What payments are included as wages?
The definition of wages is broad - encompassing everything from bonuses to termination payments. Wages can be divided into two groups: taxable or exempt wage components.
A superannuation contribution is included as wages under the Payroll Tax Act 2007. This means that all employer superannuation contributions made for employees or deemed employees are taxable.
More information can be found in relation to Payroll Tax by following the link.