PAYG WITHHOLDING TAX
Payroll tax is a self-assessed tax on the wages that employers pay to their Queensland employees when the total wages are more than a certain threshold.
As an employer, you must register for payroll tax within 7 days after the end of the month in which you:
- pay more than $25,000 a week in Australian taxable wages or
- become a member of a group that together pays more than $25,000 a week in Australian taxable wages.
Businesses may be grouped and treated as one unit for payroll tax if they are related or connected.
This guide gives you everything you need to determine your employer status, register for payroll tax and start lodging returns.
You may be eligible for one or more of a range of payroll tax relief measures as a result of the impacts of coronavirus (COVID-19).
- refunds of payroll tax for 2 months
- a payroll tax holiday for 3 months
- deferral of paying payroll tax for the 2020 calendar year.
If you are an employer (or part of a group of employers) who pays $6.5 million or less in Australian taxable wages, you may receive an email about a:
- refund of your payroll tax for 2 months
- payroll tax holiday (i.e. no payroll tax to be paid) for 3 months.
You can also apply for a deferral of payroll tax for the 2020 calendar year. (If you have already applied for a deferral, you do not need not reapply – it will be extended.)
If you do not receive an email, or you are unsure about your eligibility, complete the refund/holiday application form.
If you are an employer (or part of a group of employers) who pays more than $6.5 million in Australian taxable wages and have been negatively affected (directly or indirectly) by coronavirus, you can apply for a:
- deferral of payroll tax for the 2020 calendar year (If you have already applied for a deferral, you do not need not reapply – it will be extended.)
- refund of your payroll tax for 2 months.
A business is directly or indirectly affected by coronavirus if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions.
How to apply
There are 2 online application forms.
Apply for refund/holiday (You must apply for this one before 31 May 2020.)
The team at DGL are here to clear up any confusion and assist you with the new announcements and updates, in particular regarding PAYGW Tax vs Payroll Tax and the Coronavirus tax relief measures.
Please contact us if you need help.