When business growth leads to new tax challenges

September 2019 | Accounting & Tax

Background

One of our client’s businesses has been steadily growing over recent years, and in addition to its Western Australian base has also now established offices in Victoria and New South Wales. As to be expected, with an expansion in business operations came an increase in the number of employees – and consequently a growth in the total wages to be paid each month.

Our client came to AAG’s Accountancy team for guidance as they suspected they may be close to the level required to register for payroll tax, but were unsure of the different thresholds and rates in each state. They were also unaware of the actions they would need to take to comply with their payroll tax obligations.

AAG In Action

After first meeting with our client and gaining an understanding of their business’ position in terms of employee numbers and wages, it was apparent that they were required to register for payroll tax. From there, the steps we took to assist our client included:

  • Provision of advice on how to register for payroll tax;
  • Guidance around what the taxable components of the wages are for the calculation;
  • Provision of a Payroll tax worksheet template;
  • Monthly review of the completed worksheet to ensure all relevant expenses were included in the taxable wages; and
  • Advice on how to lodge their payroll tax return.

Result

By engaging AAG to provide expert business and taxation guidance, our client now has the confidence to continue their operations knowing they are complying with their payroll tax obligations. With assurance that the information they provide to the Department of Finance (WA) is correct, they can focus on business growth and their day-to-day activities rather than concerning themselves with matters such as payroll tax.

Are you the owner of a growing business and are unsure if you comply with payroll tax obligations? We’re ready to answer any questions you may have! Simply contact AAG today on (08) 9227 6300 or email .

Important information and disclaimer

This publication has been prepared by AustAsia Group including AustAsia Accounting Services Pty Ltd (Registered Tax Agent No 7587 3005).

Any advice in this publication is general only and has not been tailored to your circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance, or other decision. Please seek personal advice before acting on this information.

Information in this publication is accurate as at the date of writing, 23 September 2019. Some of the information may have been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

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