17/04/2024
Be proactive and be very diligent in your payroll tax obligations. And note the grouping provision (associated companies / businesses) collective value for payroll tax obligation is $1.3million for Australia wide payments (gross wages, super , directors fees, contractors - note some exemptions may apply and there is deduction values - contractors fees include the labour and materials and the deduction lists the set offset value).
And your grouping company that is liable needs to be very accurate in reporting and identifying the associated entities assigned to the group.
The payroll tax value, the interest payments and the payroll tax penalty fee can add up and be extremely costly. And the group company is liable for the accurate reporting and lodgement. The research required to identify possible associated entities is extensive and also the investigations to your contractors is also extensive .
So do your due diligence and ensure who could be in the group control and the collective value, as $1.3m is not a lot to accrue across a couple of entities.
Do not get stung, but also implement document control, for privacy and maybe become aware of the privacy act associated with sourcing this information and collating the information and storing it. Meticulous reporting and storing of records and source documents is key and should be collated at the time of payment to employees and or contractors.
All records must be kept for 5 years. So maybe implement an internal audit system of processes, procedures and checklists to ensure you meet your obligations and streamlines this process.
Always seek your accountants guidance when you have some concerns.
