Lodge and pay payroll tax

You can apply for a payment arrangement to pay an outstanding payroll tax liability by instalments or extend the time when payment is due.

• Interest payable at the prescribed rate will be charged under such an arrangement.
• Late payment penalties will apply to an extension of time if the application was made after the due date for payment.

See the Payment Arrangements revenue ruling for more information.

To complete this application, you may need to provide

• assessment advice
• invoice or notice issued by the Office of State Revenue
• income and expenditure for the taxpayers that are responsible for payment of the liability
• copies of bank statements
• balance sheets
• profit and loss statements and any supporting financial documents for the last two years
• a projection of cash flow on a month-by-month basis that covers the period of the instalment proposal

Notify us in writing within 14 days of being appointed as a representative of an insolvent client, or if you stop representing the client.

You must

• advise us if the insolvent client has any ongoing payroll tax liability, or provide us with the date on which the client has stopped paying wages
• lodge all outstanding payroll tax returns and
• pay post-appointment liabilities in full.

We may impose penalties for late lodgment and late payment.

Email us for pre- and post-appointment matters and proof of debt enquiries.

Outstanding returns and annual reconciliation

Online Payroll Tax provides a wage breakdown function which automatically totals the wage payments that constitute either taxable or exempt wages and calculates the amount of tax payable.

Annual reconciliations must be completed by 21 July, or earlier if the individual clients’ circumstances require it.

All WA wages must be lodged for the entire current financial period. If the insolvent client pays interstate wages, lodge the Australian taxable wage details for the entire current financial period.

Payments

Make payment for any outstanding returns from the date you are appointed to manage the insolvent entity. If you are appointed part way through a particular month, you will need to manually calculate the liability for that month. This can be calculated using the following formula

Amount to pay = number of days appointed, divided by total number of days in the month, times tax calculated.

The amount of tax calculated displayed on the ‘Payroll Tax Lodgment’ screen is based on the liability for the entire month.

Accessing client details

After you have notified us of your appointment as the representative of an insolvent client, you will need to get permission to access the client’s account from their account administrator.  Their administrator will need to appoint you within Online Payroll tax as an administrator with full access/rights. The system allows up to three administrators. If your client can't appoint you as required, contact us to request access to their account.

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