Revenue is currently the target of a SMS scam that is using Revenue NSW branding. This is causing higher call volumes. Customers can confirm and review their fines online via myPenalty, myEnforcement Order or their MyserviceNSW account.
Gig workers can be considered independent contractors or employees, or sometimes the platform operator is classed as an employment agent. It depends on the business structure and the workers’ employment relationship. Click the arrow to read the new ‘Gig economy businesses’ page.
If you pay wages in NSW and they exceed the monthly threshold, you must register for payroll tax. If you’re a member of a group, the total Australian wages paid or payable by all members of the group will determine whether you should register for payroll tax.
The value of fringe benefits used for payroll tax is the NSW portion of the total of type 1 and type 2 aggregate amounts (less any tax exempt entertainment fringe benefits) multiplied by the type 2 gross-up rate.
If you pay fringe benefits in NSW and interstate but cannot accurately determine your NSW fringe benefits value, you can pro-rata your FBT value based on the ratio of NSW wages to total Australian wages.
Interstate wages
Your interstate wages affect the threshold you claim.
Often businesses fail to include all salary sacrifice amounts that are liable for payroll tax. Payroll tax is applicable to salary sacrifice arrangements.
Note the following:
the reduced wage that the employee pays income tax on is treated as taxable wages
the pre-tax superannuation contribution is classified as the employer contribution and is taxable
Shares or options granted to employees through an Employee Share Scheme (ESS) defined in section 83.10A of the Income Tax Assessment Act 1997 are considered wages for payroll tax. You must delcare the value of the shares or options provided as wages.
Payroll tax audits show that customers are making the following errors:
Not being aware:
of any ESS offered in your company or your parent company
that the value of shares and options arising from ESS are taxable wages, and/or
that dividend equivalents are liable wages for payroll tax purposes.
Incorrectly calculating the taxable value arising from the grant of shares or options.
Using incorrect share price, vesting date or exchange rate when calculating the market value of the shares or options.
Using a pro-rata method to calculate taxable values for employees providing services both in Australia and overseas during the vesting period. The pro-rata method is not acceptable when calculating taxable values for payroll tax.
Not recognising that shares or options are deemed to have vested or become taxable seven years after the grant date (whether or not they have actually vested).
Not including the taxable value of shares under the Commonwealth ‘taxed-upfront $1,000 reduction’ scheme. Although these shares are exempt for income tax purposes, they are not exempt for payroll tax purposes.
Not claiming a refund when taxable values arising from shares or options have been declared for payroll tax at grant date which subsequently got cancelled or rescinded.
Employment termination payments (ETPs) are liable for payroll tax. The amount of ETP that is liable is the amount paid by you, minus the income tax exempt component.
Third party payments
If an employee or director provides services to a business, all payments for that service are liable for payroll tax, no matter who makes or receives the payments.
Wages you pay an employee or a director for services they provide to your business as known as third party payments and must be included in your returns even if they are paid:
to a person other than the employee or director
by a person other than the employer
by a person other than the employer to a person other than the employee or director.
These payments for services can include consultancy fees paid to or received by a third party.
Contractors
Payments made to contractors are included for payroll tax unless an exemption applies.