All businesses registered for payroll tax must perform an electronic Annual Reconciliation (e-AR) online
Please be reminded that the 2015-2016 payroll tax annual reconciliation is due on 21 July 2016. All businesses registered for payroll tax must perform an electronic Annual Reconciliation (e-AR) online. In Victoria, the e-AR must be completed via PTX Express. Broadly, Victorian businesses with Australian wages exceeding the monthly threshold of $45,833 and the annual threshold of $550,000, over the 2016 financial year, are required to be registered and remit payroll tax. The taxable wages threshold varies from State to State, however the e-AR process is similar in all jurisdictions.
Taxable wages are broadly defined and include items such as wages, remuneration, salaries, allowances, commissions, bonuses, superannuation, fringe benefits, value of employee shares and options, payments to contractors and company directors, employment termination payments and accrued leave. Payroll tax matters can be further complicated where businesses operate in many different Australian States and Territories.
If a business fails to comply with its payroll tax obligations, penalties may be imposed for tax shortfalls and interest may apply from the original due date on the amount not paid.
Please contact your Pitcher Partners tax advisor if you have any queries or require any assistance with the e-AR process.