A summary of our most frequently asked questions on payroll tax.
A brief overview of payroll tax.Payroll tax is a state government tax imposed by the Office of State Revenue for each State and Territory. Payroll tax is owed on any wages of an organisation's total taxable Australia-wide wages that exceeds a threshold amount. Payroll tax rates and thresholds vary between the States and Territories.
Maximum annual deduction entitlements also vary between the States and Territories.
A full set of links to relevant Office of State Revenue websites and current payroll tax rates is available in our Recruiter Success Hub.
As the party closest to the "end user" (your client) it is your recruitment agency's responsibility to be aware of your payroll tax obligations; and make timely submissions or payments. To manage this process, Oncore provide clear breakdowns of your margins (gross, net and payroll tax components) in both our online reporting and in the reports provided along with your drawdown payments.
What does "work location" mean in terms of payroll tax?
When selecting the work location for a new engagement, ensure that you are selecting the location that the work is actually being performed in (and not the location of the host-client's head office). This is critical for both payroll tax and insurance purposes; as the correct location is the State or Territory that the worker is physically conducting their role from.
Please see some practical case studies below:
If a worker is working in QLD for 55% of the time and in NSW for 45%, the payroll tax location will be QLD.
If the host-client is based in NSW and the worker is working remotely for them in VIC, the payroll tax location will be VIC.
If the host-client is based in VIC and the worker is working in VIC, but relocates to QLD during the term of the contract, the payroll tax location would need to change from VIC to QLD.
What payroll tax rates does Oncore use in their online reports?
As Oncore does not know our customers' specific payroll tax rates (different States and Territories may have different levies and banding for particular rates) the rates that we provide on reports are specific to Oncore and the payroll tax thresholds that we have in place.
Generally, as we process a considerable volume of wages annually, these payroll tax percentages often reflect the highest possible rate band. You can use these rates as a guide for how much payroll tax you might need to account for; but you will need to arrange for your own audit or process to ensure that you're paying the correct rates.
Can Oncore provide me with a report to assist with payroll tax reconciliation or payments?
Yes - we can. Please reach out to us via supportaus@oncoreservices.com and we'd be more than happy to provide you with this information.