41: Master Payroll Tax from Basics to Best Practices

Smarten Up! The Tax and Business Podcast

Are you ready to untangle the web of payroll tax and save your business from costly mistakes? Join us as we break down the essentials every employer needs to know!

In this revealing episode, Sally Preston dives deep into the often confusing world of payroll tax — an essential topic for business owners and managers. Whether you're a startup or running a large enterprise, understanding payroll tax is crucial for staying compliant and avoiding hefty penalties.

In Part 1 of this two-part series, Sally lays the groundwork, covering the basics of payroll tax in Australia, how it’s calculated, and the critical factors that could impact your business across different states and territories. She also offers insights into common pitfalls and the best practices to ensure your payroll tax obligations are met with precision.

In this episode of Smarten Up! The Tax and Business Podcast, you'll learn:

• An overview of this two-part series (00:26)
• A breakdown of payroll tax’s state-specific nature in Australia and the significance of harmonisation in legislation (00:53)
• Understanding payroll tax thresholds and rates, why they vary across states, and what you need to know to stay compliant (03:04)
• What counts as taxable wages and the hidden elements that could trip up your payroll tax calculation (04:18)
• How to handle payroll tax when your workforce is spread across Australia (06:58)
• Key steps for calculating payroll tax, including the importance of determining your total Australia-wide wages (10:25)
• What you might be able to exclude and why small business concessions could be a game-changer (14:19)
• The risk of audits and penalties — common mistakes businesses make and how to avoid them (17:23)
• What to do if you discover an error in your payroll tax (19:35)

From the intricacies of state-specific legislation to the nuanced inclusion of allowances, benefits, and even certain contractor payments, Sally’s expert guidance will help you navigate the complexities of payroll tax with confidence.

If you've ever wondered how to avoid the common mistakes that could trigger a costly audit, or if you simply want to ensure you’re doing things by the book, this episode is a must-listen.

CONNECT WITH SALLY PRESTON

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