PAYROLL TAX

We have an employee that resides in NSW but will be working in TAS around 3 – 4 weeks, but will then return to NSW and continue working there. Where should we be paying payroll tax?

If an employee is working in a particular state or territory for the whole reporting period (i.e. the entire month), then the payroll tax is paid where the employee is performing the work.

If an employee is working in more than one state or territory within the month (eg 3 weeks in TAS and 1 week in NSW), then the payroll tax is payable where the employee resides.

Can you tell me the rules around the payment of payroll tax- if a payroll is run in August but the pay period end date was 1st of September should this be paid in August or September payroll tax?

The answer is either would be fine, it is up to the company to decide. The legislation states that payroll tax is calculated on remuneration "paid or payable" in the month. Most employers pay payroll tax on the amount PAID in the month (based on the pay days).

We have an employee based overseas for the period 01.03-30.09. Does this 6-months service apply for the payroll tax exemption even though it is over 2 financial years?

Services performed overseas by an employee on a continuous assignment for greater than 6 months are not subject to payroll tax. It does not matter if this spreads over different financial years, so long as the service period overseas is continuous and greater than 6 months.