Payroll Tax Settings for an Entity
Payroll Tax Settings are managed at an entity level. These settings identify whether an entity is liable for Payroll Tax and whether a Payroll Tax Threshold should apply.
If you are liable for Payroll Tax, you’ll need to configure this for each applicable entity. Go to Config > Company Management > select entity > Payroll and tick the ‘Entity is Liable for Payroll Tax’ checkbox.
If Payroll Tax liability is enabled for an entity, you can still set exemptions for individual Customers, Suppliers, and Jobs and to configure pay items, superannuation items, deductions, and contributions to be included or excluded in Payroll Tax calculations.
Payroll Tax Threshold
If the ‘Entity is Liable for Payroll Tax’ checkbox is ticked, an additional row will appear to nominate whether Payroll Tax Thresholds should apply.
When this checkbox is ticked, the system will check to ensure that the combined total of the PTAX Taxable Wages, PTAX Taxable Super, and PTAX Taxable Contributions doesn’t exceed the monthly or annual thresholds for each payable state.
Regional Payroll Tax Rates
In Victoria, a lower Payroll Tax rate has been introduced for regional areas. To qualify, employers must be based in regional Victoria and pay at least 85% of their Victorian taxable wages to regional employees.
If the Payroll Address State for your entity is Victoria, you’ll see an additional checkbox for ‘Regional Employer’ will appear in the Payroll Tax Settings section. Ticking this checkbox indicates that the entity is eligible for the regional Payroll Tax rate. When ticked, the Payroll Tax Report and exports will show VIC (Regional) as the State.
This checkbox will not appear for entities with a Payroll Address State that is not Victoria.