Payroll Tax - Payroll Category Missing
Good Afternoon,
I was in the process of setting up the Payroll Tax Information section of MYOB AccountRight and it asks to select all the payroll categories to be included as Taxable Wages.
I noticed that a Payroll Category is missing from this list and I'm not sure why.
The Payroll Category missing from the list is a Superannuation Type Category and it is called "Employee Additional" which is not reportable.
However, this Payroll Category is showing in the Payroll Category List and has been setup for an Employee's After Tax Super Contribution.
The Payroll Tax Report in MYOB is including Employee After Tax Super as assessable for payroll tax. However, Employee After Tax Super is exempt from Payroll Tax so I need to find a way to ensure that this report deducts it.
HI CC4
I understand that you are based in Victoria. From what I can see of the Victoria State Government website it defines:
What are wages?
Wages are defined under the Payroll Tax Act 2007 (the Act) and include:
- wages,
- remuneration,
- salaries,
- allowances,
- commissions,
- bonuses,
- employer (pre-tax) superannuation contributions such as:
- superannuation guarantee payments,
- salary sacrifice contributions,
- the value of non-monetary contributions (from 1 July 2007), and
- superannuation contributions to defined benefit funds
- fringe benefits within the meaning of the Fringe Benefits Tax Assessment Act 1986 (Cth),
- the value of shares and options granted to employees, directors, former directors and some contractors,
- payments to some contractors,
- payments by employment agencies arising from employment agency contracts,
- remuneration paid by a company to company directors, and
- employment termination payments and accrued leave.
Exempt wages
Some wages are exempt from payroll tax. These include:
- Primary and secondary caregiver leave (formerly adoption and maternity parental leave).
- Commonwealth paid parental leave scheme.
- Contributions to redundancy benefit schemes.
- Wages paid to employees absent from work to volunteer as firefighters or respond to other emergencies.
- Wages paid to a person while on military leave as a member of the Defence Forces.
- Bone fide redundancy or early retirement payments.
- Wages paid from non-profit group training organisations - from 1 July 2018, this also includes for-profit group training organisations.
From my reading of that, it does indicate that wages are included, however, there is no documentation that I have been able to find that employee additional superannuation payments, which are an after-tax deduction, are not designed to be included.
My recommendation would be to consult the Victoria State Government to indicate that and reference the website where that is listed. Once we have that information we can go back to the required team for further investigation. However, based on what I can see the software is doing the appropriate values are including those wages amount in that Report.
Should you wish to not include those values it would be a manual process of reducing the Wages/Salaries amount by that amount to give you the new defined Wages/Salaries which can be used in the rest of the calculation manually.
