A state tax, which an employer or owner of an organization withholds on account of their employees. Payroll tax depends on the wages of the employees, working in an organization. Depending on the state where you are live, though every State and Federal authority receives payroll taxes.
Business owners may be accountable for payroll taxes if the total amount of wages, paid throughout Australia surpassed the state set payroll tax. In that case, an employer is liable to pay payroll tax. Those taxes which are paid from employee account mentions security taxes, medical taxes, state and federal taxes and other local income taxes. Some obligations also include Federal Unemployment tax Act, which is only applicable …show more content…
Calculation of payroll tax can be achieved with payroll feature, available in the accounting software. Online registration is also at your convenience, where you can easily submit an application with the State tax office. Every state has different tax rates, which may vary with time. The employers are needed to determine the total payroll tax, that has to be paid within time. Several accountants in an organizations are expert in calculating amount of payroll tax, details of payroll services and other obligations.
If, in any condition, the company owner or employer fails to withhold payment of payroll services or missed any scheduled payment, employer may be caught and gets liable for big fines and penalties. The above rules are also applicable on the small business owner, who does not have employees but he/she is self-employed. The employer has to pay an estimated tax on general income each quarter. Thus, there is vital importance of payroll taxes and payroll services in Australia; the determination to calculate payroll tax is also significant and it has to be paid on time to avoid penalty