What are the origins of payroll taxes ?

Payroll tax was introduced by the federal government in 1941, however, the assessment and collection of payroll taxes were given as a responsibility to the states and territories in 1971.

How are payroll taxes different from other types of taxes?

Payroll taxes, on the other hand, are levied at a flat rate meaning that everyone, within a particular state or territory, pays the same percentage of their paycheck in payroll tax.

Why are payroll taxes so important?

Payroll taxes are important because they allow states to generate revenue for their operational budgets. In fact, they represent one of the few ways states earn the revenue necessary to provide services to residents.

What is considered payroll tax?

Payroll tax is considered to be taxes paid by an employer on an employee's behalf. The base that is used to calculate the tax obligation is the employee's earning

What is the difference between income tax and payroll tax ?

Income taxes are levied by the federal government while payroll taxes are levied by the state government. Another major difference between the two is that the payroll tax is levied at a flat rate while the income tax is progressive.

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What Is Payroll Tax?

Payroll taxes are the financial obligations you and your employees are required to pay. There are various types of payroll taxes – some paid to the federal government and others paid to the state or territory authorities. There is a specific tax called the payroll tax that is paid to state and territory authorities on…

Accounting, Payroll, Tax Advice, Tax Compliance,

payroll, payroll tax, payroll taxation,

Self Employment Tax - Understand What is Important

Self Employment Tax Guidelines for Australia

The tax considerations of being self employed in Australia are unique. Legally minimising your tax burden and taking advantage of every available deduction requires careful and informed forward planning of tax minimisation strategies. If undertaken without professional guidance, tax management can be riddled with missed opportunities for claiming tax benefits. Unanticipated and unnecessarily large tax…

Accounting, Business Advice, GST, Payroll, Tax Advice, Tax Compliance, Tax Deductions, Tax Depreciation, Tax Refund,

tax, advice, self employed tax, self employment, tax deduction,

JobKeeper payment extension – What it means for your business

What the extension of JobKeeper payments means for you In June 2020, the Australian Government announced they will be extending the JobKeeper payment for eligible businesses and not-for-profits until the 28 March 2021. Originally, the payment was set to run until the 27 September 2020. Priority for this extended support will be given to not-for-profits…

ATO, Pandemics, Payroll, Stimulus, Tax Advice, Tax Compliance, Tax Deductions,

jobkeeper,

Subsidies for trainees or apprentices – Can you benefit from a wage subsidy?

Although some of the restrictions imposed due to the pandemic have now eased, many businesses are continuing to face significant financial hardship. For some, this means there are difficult decisions to be made regarding taking on new staff and/or retaining existing staff members. Apprentices and trainees are particularly vulnerable: not only are employers reluctantly considering…

Accounting, Payroll, Subsidies, Tax Advice, Tax Deductions,

subsidies, trainees, wage subsidy, apprentice,

What is Super Clearing House?

For business owners, making superannuation contributions for employees is essential. However, coordinating payments from different super funds can be complex. Thankfully, the Australian Government makes the process less stressful with the Superannuation Clearing House. It’s designed to eliminate red tape and reduce unnecessary overheads for small business owners. In this comprehensive article, you’ll learn what…

Payroll, Superannuation, Tax Compliance,

superannuation, Super clearing house,

What Sole traders need to know about the Jobkeeper Stimulus Package

With the social distancing and shut-down measures that have been imposed in order to combat the spread of Covid-19, many businesses are really feeling the financial pressure. In order to enable as many enterprises as possible to survive, and even thrive, during and after the current wave of Covid-19 restrictions, the government has put together…

Accounting, Pandemics, Payroll, Stimulus,

sole traders, covid-19, jobkeeper, stimulus,

Federal Court affirms PAYG amounts “withheld” from salary or wages

Federal Court Upholds Tax Credit, Despite Non Reporting of PAYG Withheld Amounts It is commonly understood that all PAYG amounts classed as “withheld” from the salary or wages of a taxpayer, must be reported to the ATO. This is a standard element of tax compliance, and is something that the vast majority of Australian tax…

Accounting, ATO, Payroll, Tax Advice, Tax Compliance, Tax Deductions,