case_study1

Payroll Tax

A new client came to us because of their hefty monthly payroll tax bills. Their payroll tax bills

were quite large due in part to the number of employees the business employed, and the

high wages being paid to the employees. However, on review of their previous payroll tax

calculations, we uncovered that some employees’ wages were exempt from payroll tax, yet

the business and their previous accountant had not picked up on this.

Further to this, the employee’s remuneration packages were poorly structured given some of

the tax concessions available to Pilbara employers, thus exacerbating the payroll tax bill. We

used our extensive knowledge of Pilbara tax concessions to restructure the employees

remuneration package. This improved the employees ‘take home’ pay, and at the same time,

reduced the employer’s payroll tax liability. A thorough review of the businesses payroll tax

saved the client tens of thousands of dollars in payroll tax.

At the request of the client, we refrained from calculating the amount of excess payroll tax

they had paid over the previous few years!.

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