Employment tax is an evolving landscape. Employers need to ensure their tax compliance and employee obligations are up to date, and this can be both time consuming and costly - and a risk to get it wrong. To cover your compliance requirements and control your costs, you need a team focussed on aligning your business and commercial needs with the regulations.
The evolving nature of employment taxes makes it difficult for employers to keep up and ensure their compliance. BDO can help you stay compliant and confident in your tax processes.
Our services include:
If your Employment Taxes issues relate to expatriate or mobile employees you may also benefit from support from BDO’s specialists in Global Expatriate Services, Migration Services and Transfer Pricing (in respect of Base Erosion and Profit Shifting).
PAYG stands for ‘Pay As You Go’. PAYG withholding is a tax system in Australia where taxes are withheld from payments, such as the payment of salary by employers to their employees. The PAYG system is overseen by the ATO.
FBT is an acronym of Fringe Benefits Tax. FBT is separate from income tax and is a tax paid by employers. This tax is paid on benefits provided by employers to employees, their families, or other associates.
Salary packaging is where an employee enters into an agreement with their employer to forego future salary and receive fringe benefits or additional employer superannuation contributions instead. This may be financially beneficial for the employee.
Employers are required to make superannuation contributions for their employees, this obligation is called Superannuation Guarantee. The employers’ Superannuation Guarantee obligation is calculated as the superannuation contribution rate (11% for FY24, increasing to 12% for FY26) times the employee’s ordinary time earnings (which is subject to a quarterly cap). In circumstances where employers do not meet the compulsory Super Guarantee obligations, they are subject to a penalty called the Superannuation Guarantee Charge.
Navigating the new era: Same-day superannuation contributions >
Employee Share Schemes (ESS) allow employees to acquire an ownership interest in the company they work for. This helps both public and private companies attract and retain employees and gives extra incentives for employees to share in their employer’s success.
Are you compliant with Employee Share Scheme (ESS) reporting obligations? >
Payroll tax is different from PAYG, although they may sound similar. Payroll tax is paid by employers as a percentage of wages paid or payable to their employees and is enforced by state and territory governments in Australia. Not all businesses are required to pay payroll tax because the liability arises only where the employer’s total Australian wages exceed the relevant threshold of the state or territory.
What Australian employers need to know about their payroll tax obligations >
Contact our team to discuss your needs using the request for service form. Alternatively, call us on 1300 138 991 to speak with an adviser in your nearest BDO office.
Adele Townsend
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