Payroll tax

Payroll tax is a significant cost of employing staff for small and medium-sized businesses in Perth and WA.  And while there is a payroll tax exemption for small employers is present: the exemption is actually quite small (it is suited moreso for the mirco sized business under $2m).  So many small and medium sized business suffer payroll tax and the tax structure (sadly) has not yet considered payroll tax planning.

At Westcourt, we understand that payroll tax can be complex – especially with national businesses as each state has different payroll tax law and administration.  And the apportionment of the small business employer threshold (where relevant) can be complicated for national businesses with employees who travel significantly for extended periods.

And we understand that payroll tax audits form the most common and often the most aggressive types of audits.  Many of our new clients approaching us have had a negative

Often a family in business will operate separate and distinct businesses whose operations are unrelated to each other – so that these distinct business may well be able to enjoy their own tax threshold even though the one extended family might control both.  So looking at the overall family operations and identifying an opportunity for a payroll tax grouping exclusion.

At Westcourt, our outsourced payroll solutions can quickly and efficiently prepare payroll tax forms and lodge them on time – either in WA, Victoria or elsewhere in the country. We do that through Xero payroll for smaller employers and then Key Pay for employees with complex payroll and HR needs.

As part of the payroll solution, it is essential to note that salary and wages paid to a family member can attract payroll tax, and with payroll tax in WA at 5.5%, the question for a family is – what is the benefit of that family member being paid a salary? Sometimes there is still a commercial benefit (notwithstanding the payroll tax), and sometimes the family member will look at their salary and the business dividends as effectively “all the same”.

Engaging Westcourt for payroll tax advice is an excellent strategy because:

  1. Housing your payroll services with your tax advice services ensures that you obtain a “Whole of Tax” approach to your business, including STP, SGL, FBT, payroll tax, and PAYG withholding.
  2. In a family business context, payroll tax strategies are unique and cannot be replicated across other larger business models– so a focussed firm can unlock better value.
  3. Our deep knowledge of tax on other areas of employee remuneration, including employee share schemes, can generate tax outcomes across all of the taxes – including payroll tax.
  4. We have templates, payroll tax calculators and checklists for every state of Australia that allows national employers to recompute the payroll tax liability on a group basis.
  5. Our tax leadership position within the profession guarantees you deep knowledge and strategies on payroll tax management.
  6. Our GGI Global Alliance Network position gives you locally on the ground knowledge for employees offshore.

Other Tax Law Advisory Services

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