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As a small or medium business owner, your responsibilities can be overwhelming, especially when it comes to managing employee payroll tax and Pay As You Go (PAYG) withholding. These areas can be complex and demanding, with various obligations, calculations, and deadlines.
At Attune Advisory, we understand the challenges you face, which is why we've created the below guide to help demystify these topics and provide guidance based on state and territory government revenue authorities and Australian Tax Office (ATO) requirements.
Pay As You Go (PAYG) withholding is a system where employers withhold tax amounts from their employees' payments and remit them to theAustralian Taxation Office (ATO). This system ensures that employees meet their annual tax liabilities. As you’re likely aware, the amount of tax to be withheld depends on the employee's earnings and the information provided in their Tax file number declaration but if you have any uncertainty around this, definitely reach out to the Attune team.
As an employer, you have several tax obligations related to PAYG withholding. These include registering for PAYG withholding, withholding the appropriate amounts from employee wages, reporting and remitting these amounts to the ATO, providing payment summaries to employees, and submitting an annual report to the ATO.
Setting up your employees for tax and super involves collecting Tax file number declarations, using tax tables to determine the amount to withhold, and making superannuation guarantee contributions for eligible employees. If you have multiple staff members, you’re probably across this, but if you’re hiring your first employee, give the Attune team a call and we can help you through the process.
Payroll tax is a state and territory tax imposed on employers based on the wages they pay. The tax amount varies across states and territories, and specific thresholds determine when employers become liable for payroll tax.
Payroll tax applies to all employers whose total wages exceed the specific threshold set by their jurisdiction. If your totalAustralian wages surpass the threshold, you must register for payroll tax. Once again, if you’re looking for advice on your Payroll Tax requirements, we’re here for you.
Note there’s specific thresholds to be aware of when it comes to where your business operates and is located, so it’s worth chatting to the Attune team to ensure you’re covered with your Payroll Tax obligations.
Certain components of termination payments are subject toPAYG withholding, such as unused leave, redundancy payments, and payments in lieu of notice. Additionally, employers have an obligation to make superannuation contributions for eligible employees.
Pay rates and conditions for employees vary based on their industry, job, and any applicable awards or agreements. Fair Work Australia provides resources to help employers understand their obligations in this regard.
Employing casual workers may involve different tax and super obligations. It's crucial to understand these distinctions and ensure compliance with the relevant requirements, and we can offer you tailored advice that suits your needs when looking to employ a casual worker.
At Attune Advisory, we offer expert advice tailored to your business needs. Book an appointment online or give us a call to receive tailored, strategic advice that will ensure your business is operating at its optimum level.
If you’d like some help navigating your Payroll Tax and PAYG, reach out to the Attune team on 1300 866 113 or send us an email to book an appointment.
