Month: July 2024

 

As an employer, you are responsible for protecting your employees from work-related injuries. You must familiarise yourself with your duties and obligations if an employee gets injured on the job. WorkCover helps businesses provide that fundamental safety net should anything happen at work. In this guide, we’ll outline your WorkCover obligations as an employer in Victoria.

 

WorkCover in Victoria

WorkCover insurance, regulated by WorkSafe Victoria, covers your business and your employees in the case of work-related injuries. This includes workers’ compensation to cover wages and benefits while employees cannot work due to medical reasons.

In Victoria, you are required to register for WorkCover insurance if your business employs workers. However, there are exemptions to this. WorkCover is not obligatory for companies that pay remuneration lower than $7,500 in a financial year. Sole traders and companies who perform all the contract work for a single client are also exempt from WorkCover.

You will pay insurance fees and premiums based on your business operations and industry. Some companies, like construction and manufacturing enterprises, may pay more due to their industries’ safety history. As a Victoria-based employer, you are required to know your insurance premiums and parameters.

 

What are My WorkCover Obligations as an Employer?

You are required to fulfil several WorkCover obligations if you run a business in Victoria. As an employer, you must:

• Register for WorkCover insurance (unless you are exempt).
• Create a safe work environment to the best of their abilities.
• Notify WorkSafe whenever you change your business operations or premises.
• Display notices in the workplace on how to make a claim.
• Make available a register of employee workplace injury history.
• Ensure all details regarding employee payments, wages, and benefits are up to date.
• Pay insurance premiums by the correct deadlines.
• Determine whether you are covered by your WorkCover insurance before employing contractors.

If you do not perform these duties, you will be asked to pay fines or accept further penalties.

 

Stay on Track with Expert Tax Consultants

You may take every possible measure to prevent workplace injuries to your employees, but accidents can still happen. That’s why it’s important to know your legal obligations as an employer in Victoria.

Glance Consultants can help you keep track of your WorkCover obligations. We provide expert accounting services to ensure you handle workplace injuries with respect, dignity, and full legal compliance. Contact us today to learn more about your WorkCover obligations in Victoria.

 

Does your business pay wages to hired employees? If so, you may be obligated to pay payroll tax. Understanding this levy is vital if you want to operate legally. In this guide, we explain what payroll tax is and outline the variations in rates between different states. We also highlight why payroll tax is important for your business.

 

What is Payroll Tax in Australia?

Payroll tax is a levy that employers must pay if their business’s total wage bill exceeds a certain threshold. Payroll tax was introduced temporarily during World War II but was made permanent in 1947. Then, in the 1970s, each state gained control over its own payroll tax rates and thresholds.

 

Why Do Payroll Tax Rates Matter?

Payroll tax awareness matters if you want to optimise your business operations. Keeping informed of payroll tax rates and thresholds will help you budget more accurately and make more productive business decisions.

If you fail to report the correct payroll tax figures for a financial year, you risk attracting the attention of the Australian Tax Authority (ATO). You must improve your payroll governance to ensure you pay the right tax and remain a fully legitimate business.

 

Payroll Tax Rates & Thresholds

These are the current rates and annual thresholds of payroll tax for each state (as of 2024):

 

State	Rate	Annual Threshold
Australian Capital Territory	6.85%	$2,000,000
New South Wales	5.45%	$1,200,000
Northern Territory	5.5%	$1,500,000
Queensland	4.75% (< $6,500,000) 4.95% ($6,500,000+)	$1,300,000
South Australia	4.95% ($1,700,000+)	$1,500,000
Tasmania	4% ($1,250,001 – $2,000,000) 6.1% ($2,000,001+)	$1,250,000
Victoria	4.85% 1.2125% (regional employers)	$900,000
Western Australia	5.5%	$1,000,000

 

Payroll Tax Exemptions

Not all businesses need to pay payroll tax. Your company will be exempt from paying if your total wage bill falls below the threshold figures. Make sure you’re up-to-date with the weekly, monthly, and annual thresholds for payroll tax in your state.

 

Calculate Accurate Payroll Tax with Glance Consultants

Payroll tax awareness will help your business operate legally and fairly. But it can be challenging to figure out how much you need to pay, particularly since rates and thresholds vary between states. This issue is made even worse if your business operates in multiple states.

You should hire a specialist tax consultant to ensure your company operates inside the law. At Glance Consultants, we can remove the burdens of understanding payroll tax and help you navigate the complexities of calculating rates and exemptions. Get in touch today to optimise your business accounting.