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How Payroll Tax Help and Advice Can Minimise Taxes for a Start Up Business

Taxes may be the least favorite topic for small business owners, but it also happens to be one of the most important. Seeking the right information and taking the right steps before the end of the financial year can make a huge difference to your tax bill and can save you money almost immediately.

The tricky thing about payroll tax is that there are many elements and factors which determine the amount of tax you are required to pay, if any. Each state has their own tax threshold amounts so the first thing to look at is determining what yours is.

While the thresholds for each state differ greatly, the percentage rate is adjusted accordingly to help even out the playing field. For example, the tax threshold for the ACT is $2,000,000 and the threshold for Victoria is only $575,000, but the percentage rate for the ACT is 6.85% and for Victoria, just 4.85%.

A Tax Lawyer can also help you understand areas of payroll tax that can be a hard to determine such as the definition of an ‘employee’ versus a ‘contractor’ and the definition of ‘wages’, factoring in overtime payments, superannuation, holiday pay, commissions etc.

Having a clear understanding of how all of this affects your business and the amount of payroll tax you are required to pay is imperative for startup businesses. Getting it right in the beginning can save you many headaches in the future such as being hit with fines and penalties for not paying correct amounts which can spell the end of your business.

Seek advice from an expert Payroll Tax Lawyer at Tobin Partners and have peace of mind for your new business. To find out more about the services we offer, don’t hesitate to contact us.

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