Assistance with Payroll Tax Compliance
Lodging an annual payroll tax return whilst preparing accounts for the financial year can be a daunting task. PPM assists employers from a broad range of industries to meet their payroll tax obligations across all Australian States and Territories. Our specialists assist with the preparation of accurate payroll tax returns in a timely manner allowing our clients to focus and dedicate their personnel on other aspects of the business.
In addition to our compliance role, PPM is a leading boutique indirect tax litigation practice and has successfully represented a number of clients in the Supreme Court. This provides PPM with the unique benefit of being actively involved in both the technical and practical aspects of payroll tax.
By 21 July each year, registered employers are required to lodge an annual payroll tax return in each Australian State or Territory in which they employ. This process allows employers to reconcile their annual information with the monthly payroll tax returns lodged throughout the financial year. To the extent that an overpayment or underpayment is identified, this presents an opportunity to remedy it in an efficient manner.
Each year, PPM assists a number of employers to conduct annual compliance reviews and prepare the necessary returns and audit documentation. In particular, we manage the annual reconciliation process by offering the following key services:
- analysing the employer’s payroll codes to identify all “taxable wages” and classify them appropriately for payroll tax purposes;
- reviewing all monthly payroll tax returns lodged during the year to ascertain the “taxable wages” declared;
- reviewing the employer’s annual payroll reports, FBT returns, contractor schedules and other financial information to identify the actual “taxable wages” paid and classify them appropriately;
- ensuring that all payroll tax exemptions or concessions have been fully claimed;
- providing on-site assistance with lodging the annual payroll tax return for each applicable jurisdiction; and
- providing an audit review folder containing a written report for the financial year, supporting calculations and other key documentation.
To the extent that any systematic issues are identified, we can assist with obtaining a refund or making a voluntary disclosure for prior financial years.
Many employers prefer to engage PPM to assist with their ongoing payroll tax compliance. The services involved are similar to those detailed above but are used to ensure real-time compliance on a monthly basis. This substantially reduces the cost and time commitment for internal finance personnel allowing employers to focus and dedicate resources to key aspects of the business.
The payroll tax regimes throughout Australia are constantly changing both through legislative amendments and case law. From PPM’s unique role as a legal representative on State tax matters and a registered Tax Agent focused on compliance, we are abreast of the ongoing technical and practical changes in real-time.
It is our experience that clients often achieve the following outcomes by engaging PPM to assist with their payroll tax compliance:
- accuracy of lodgements and minimisation of audit selection risk through PPM’s dedicated payroll tax expertise;
- confidence that all exemptions and concessions are claimed minimising the common risk of overpayment through PPM’s breadth of knowledge;
- continuity and knowledge retention of the payroll tax compliance function minimising key employee risk from staff turnover;
- substantial reduction to the cost and time commitment for internal finance personnel enabling employers to focus and dedicate resources on key aspects of the business; and
- reduction to the cost and time commitment to prepare for future payroll tax audits through the development and provision of robust audit compliance documentation.