Payroll tax frequent questions
General
- 1) How is the payroll tax threshold determined?
The threshold is indexed each year based on the percentage change in the Sydney CPI number over the 12 months ending in March prior to the commencement of each payroll tax year.
- 2) What if the CPI falls?
The threshold will not be reduced even if the CPI falls.
- 3) Will the threshold always be a multiple of 1,000?
Yes, if the threshold using the CPI is a figure ending up to $500 the threshold will be rounded down to the next $1,000 (eg $650,350 becomes $650,000) and a figure more than $500 will be rounded up (eg $650,700 becomes $651,000).
- 4) I employ apprentices/trainees – do I include these wages in my total wages calculations for registration?
You must include the wages (including superannuation, allowances and FBT) paid to apprentices and new entrant trainees in your business’s payroll tax calculation.
We administer an offset rebate scheme for apprentice/trainee wages that allows the rebate amount to be calculated and offset against both the monthly payroll tax payments and annual reconciliation calculation. The offset facility is provided through our online services.
- 5) I think I am a member of a group but I do not exceed the payroll tax threshold. Do I need to submit a payroll tax registration?
If you are a member of a group with a nominated group single lodger or a designated group employer, you will need to register for payroll tax whether you exceed the threshold or not. Government Departments under Schedule 3 must also register for payroll tax. All other organisations will only need to register if their group exceeds the payroll tax threshold.
- 6) What help is available for new payroll tax clients?
New payroll tax clients can contact a dedicated client account manager and are able to access a range of online tools and resources:
Lodging and assessment notices
- 1) What if I do not have full details available at the time of lodging?
If you do not have full details available, the Chief Commissioner of State Revenue can make an estimate assessment.
- 2) Why has interest been imposed on my assessment?
We may impose interest for late or under payments or where misleading information has been provided. For more information on why interests and penalties may be imposed, read Interest and penalties
- 3) Why have I received a reassessment notice?
You may have received a reassessment notice because:
your exemption status has changed
we believe your wages were incorrectly calculated.
If necessary, an assessment can be reassessed up to 5 years from the original assessment. If a true and full disclosure of the facts was not made and the resulting reassessment would increase the liability, no time limit applies.
If you would like more information on your reassessment, contact us.
- 4) How do I lodge an objection to my payroll tax assessment?
If you disagree with your payroll tax assessment, you have the right to lodge an objection. You need to lodge the objection within 60 days of the issue date of the assessment. Complete the Application for Objection form or call us for a copy of the form.
Note: Even if you are making an objection you will still need to pay your payroll tax or you may be charged interest on any outstanding liability.
Payments
- 1) What happens if I don't pay by the due date?
Payments made after the due date will still be accepted online. If, however, you don't pay your assessment by the due date, your account will be referred to our Debt Management Branch. You will need to pay the full amount of payroll tax due, including accrued interest, and may face additional penalties.
- 2) What other ways might OSR use to recover unpaid tax?
In addition to recovering the tax from the employer, there are other ways of recovering the tax. These provisions also apply to interest and penalties:
if the employer is a member of a group, all the group members are jointly and severally liable for the payroll tax liabilities of any member of the group
the Chief Commissioner of State Revenue can garnishee money from third parties. This includes monies held or owed by third parties such as banks and debtors.
- 3) Can I get an extension of time to pay my payroll tax?
If you are unable to pay your payroll tax by the due date, contact us.
More information
