Payroll tax

Introduction

All states and territories in Australia levy payroll tax. The tax is calculated as a prescribed percentage of wages paid or payable by an employer. Wages are broadly defined and may include normal salary and wages, certain fringe benefits, employer superannuation contributions, unacquitted travel allowances and entertainment expenses.

2.

Policy

2.1 The University will comply with relevant payroll tax legislation in each jurisdiction as required.

2.2 The Manager, HR Systems and Payroll Services (or nominee) will be responsible for ensuring that payroll tax is calculated correctly and that returns and payments are remitted by the due date.

3.

Procedures

3.1 The University is required to provide payroll tax returns at regular intervals (monthly and/or annually depending on the jurisdiction) which state the taxable wages paid or payable during the designated period.

3.2 The payroll tax payable must be calculated on the basis of total earnings after deducting allowable items. Relevant legislation and checklists should be consulted to determine the amount of total earnings.

3.3 A report from the Finance System relating to the payroll tax account will be reconciled on a monthly basis by the Manager, HR Systems and Payroll Services (or nominee).

3.4 The reconciled balance of the payroll tax account will be adjusted for the following:

• Deduction of the rebate for large payroll
• Addition of the value of tax on benefits in kind (Fringe Benefits Tax)
• Addition of the value of tax on unacquitted per diem allowances

3.5 Payroll tax returns and payments must be reviewed and authorised by the Manager, HR Systems and Payroll Services (or nominee) prior to submission.