Many business owners find payroll tax confusing. Some common questions they ask are “when should I pay payroll tax,” “how do I pay for it,” and “how do I calculate payroll tax.”
Let’s get up to speed as we answer some frequently asked questions about it.
How does payroll tax work?
Payroll tax is a type of state based tax that’s calculated on your business’s monthly total wages. If you plan to have employees in different states or territories, keep in mind that payroll tax varies — depending on where your employees are located.
Should I register for a payroll tax?
Not all businesses need to pay payroll tax. To determine whether you need to register, calculate your total wages paid. If you wage costs exceeds $54,166 in a month (Victorian threshold), then you will have to register. To do so, create an account via PTX Express and complete the application process.
Once you have submitted your application, it could take about 14 days for the process to complete. However, if the SRO needs more information, it may take up to 30 days.
When is my due date and where can I pay?
The deadline for lodging your monthly return and payment is one week after the month closes for the particular return. If you don’t have payroll tax payable for the month, you would need to lodge a “nil” return through PTX Express.
I made a mistake when I lodged our monthly return, could I still make changes?
Yes. If you need to change anything on your monthly return, you can override it by lodging a replacement return for the month.
What happens if I fail to pay our payroll tax?
If you fail to settle your business’s monthly payroll tax obligation, you will receive a default assessment. This includes an interest fee and penalty.
The same goes when you pay after the deadline. You will incur interest and penalties.
Payroll tax doesn’t have to be complicated. But it does require you to lodge your monthly return on time and accurately.
Glance Consultants can assist with your payroll tax obligations. If you need help with yours, call 03 9885 9793. You can also reach us at enquiries@