2. Quick overview of Payroll Tax –Taxable wages and issues to be mindful of Exemptions –Common mistakes Interstate/overseas employees Allowances Employment agency provisions Contractor provisions Grouping provisions Completing the Annual Reconciliation Accessing the system Due dates Making a payment Keeping a copy of your return Payroll Tax Annual Reconciliation2 Today’s session Agenda

3. State tax Each state has relevant legislation Different rates & thresholds Annual Australian wages Employers or groups of employers Excluding exempt employers (charities, PBI’s etc) Victoria - > $550,000 Self assessing tax Payroll Tax Annual Reconciliation3 Payroll Tax A quick overview

4. Salaries and wages Allowances Bonuses & commissions Directors fees Value of fringe benefits Superannuation Termination payments Shares and options Payroll Tax Annual Reconciliation4 Payroll Tax Taxable Wages

5. Payments made to employees while on: Fire & emergency services duty Defence force reserves duty Maternity & adoption leave Workers compensation “Make up pay” taxable Payroll Tax Annual Reconciliation5 Payroll Tax Exempt Payments

6. Where is the work performed? a)Solely in one state? Tax payable in that state b)In more than one state? Where is the employee’s principal residence located? o Tax payable in that state Where is the employer’s registered business address? o Tax payable in that state Where are the wages received? o Tax payable in that state Where were the services mainly performed? o Tax payable in that state Payroll Tax Annual Reconciliation6 Payroll Tax Common Mistakes – Interstate employees

7. Where is the work performed? a)In another country? > 6 months – exempt < 6 months – taxable b)In Australia – employee from overseas Previous slide Payroll Tax Annual Reconciliation7 Payroll Tax Common Mistakes – Overseas employees

8. All allowances fully taxable except: Accommodation Lowest capital city rate – Hobart = $227.35 (accom, meals etc) Living away from home FBT Car 75 cents per km exempt Payroll Tax Annual Reconciliation8 Payroll Tax Common Mistakes - Allowances

9. When labour is ‘on-hired’ Deemed to be an employee of the ‘employment agent’ Liability rests with ‘employment agent’ Likely they will on-charge that cost Payroll Tax Annual Reconciliation9 Payroll Tax Common Mistakes – Employment Agency Contracts

10. Contracts that include the provision of labour except: 1.Owner drivers 2.Insurance agents 3.Door to door sellers and 6 exemptions Contractor works not more than 90 days in financial year Services required < 180 days in financial year Services not ordinarily required Contractor engages other labour Labour ancillary Services ordinarily rendered to the public Payroll Tax Annual Reconciliation10 Payroll Tax Common Mistakes – Contractor Provisions

11. How is a group formed: 1.Related bodies corporate S50 Corporations Act 2001 2.Use of common employees 3.Common control Person or persons together > 50% in each of 2 businesses Directors – majority common Shareholders – more than 50% in each Impact: 1 deduction across the entire group Joint & several liability Exclusion? Commissioner’s discretion Payroll Tax Annual Reconciliation11 Payroll Tax Common Mistakes – Grouping Provisions