Utilising Our Online Payroll Tax Calculator
As you’ve most likely already realised, payroll tax is a complex issue and attending to all the details and processes to ensure you meet your company’s obligations can be an extremely time-consuming process. So, as you would expect in this click ‘n go society, we offer a convenient online payroll calculator to simplify at least some stages of the payroll tax calculation process.
Know Your Threshold
Payroll tax is a state-based tax and as such, you need to meet the requirements of the individual state in which you employ and pay your workforce.
Each state has a different threshold and tax rate so you will need to check with your relevant state authority, refer to our online calculator or give us a call on 07 3260 5189 for a quick, up-to-date response.
The threshold works like a tax-free portion and is based on the monthly total of all gross taxable wages including allowances, superannuation, directors’ fees and other payments as set out in your state’s payroll tax legislation and even including payments to certain contractors. If you’re not familiar with what you need to include when calculating your total for the purposes of calculating payroll tax, refer to details at your relevant state authority or speak with us so we can advise you.
If your total amount including all the relevant wages, allowances/contractor payments is below the threshold in your state, then you do not have to pay payroll tax. But if you want to do a double check, by all means use our online payroll tax calculator.
Establishing the State of Payroll Tax
As payroll tax is a state-based tax, if you run your payroll Australia-wide and have employees working in different states, then you will need to separate them under the relevant states and submit payroll tax to that particular state in order to use our online calculator.
We advise you not to utilise our online calculator if you do pay employees across multiple states, but rather to discuss your situation with us so we can streamline and simplify the process for you.
Yes, it’s a very complex tax, especially if your operation is nationally-based.
Using Our Online Payroll Tax Calculator
Our online payroll tax calculator will simplify the final process but first you must correctly calculate the total to input into the calculator.
As mentioned above, refer to our article on Self-Assessment of Payroll Tax, your state authority’s website or talk to us to ensure you are clear with what to include in your total.
As state rates differ, you must only include the monthly wages total applicable to the workforce in each state. Even though each state has a different rate payroll tax is calculated on your total Australian payroll.
If your workforce is employed and paid across multiple states, you will need to calculate and submit separate payroll tax payments for each state. If you are in that position, then we strongly advise you to speak with us to ensure you are optimising your structure.
Once you have all that information ready you’re ready to use the calculator:-
- Select the State – simply click on the state on our map.
- Enter the annual total – type in the total amount.
- Calculate – click calculate.
- Result – you will see an amount in the box – that is the amount of payroll tax you are required to pay to that state authority.
- Record the amount to enter in your payroll tax paperwork.
But our calculator should not be used if you pay wages in more than one state.
Convenient, Discreet, Easy to Use
The Tobin Partners online payroll tax calculator is a great resource with all the required formulae built into the system. This is a free service that we offer, it’s very easy to use, saves you doing the calculations and being online, it’s available to use 24/7 from wherever you are – you can even use it from a mobile device.
Of course, the responsibility is yours to ensure that the total you enter has been arrived at correctly with inclusions.
If you have any questions regarding how to calculate payroll tax, then please don’t hesitate to call Peter Tobin 0438 001 809 for a confidential discussion. We’re based in Queensland but we handle payroll tax matters for companies across Australia.
