NSW State Payroll Tax threshold showing the incorrect amount in QuickBooks 2010/11

Legacy KB ID: 3746

Question

Why is the NSW State Payroll Tax threshold showing the incorrect amount?

Answer

*****   THIS ISSUE HAS BEEN RESOLVED IN THE 2011/12 EDITION   *****

Currently the New South Wales State Payroll Tax threshold shows the incorrect amount in QuickBooks 2010/11 and therefore the State Payroll Tax Summary and State Payroll Tax Detail reports calculate the incorrect figures.

For the 2010/11 financial year the correct thresholds are:

·         Annual:  $658,000;

·         28-day month:  $50,477

·         30-day month:  $54,082

·         31-day month:  $55,885

Also during this period the percentage rate for the NSW State Payroll Tax will vary depending on the time of year.

NSW percentage rates:-

From 1st July 2010 - 31st December 2010 = 5.55%

From 1st January 2011 - 30th June 2011 = 5.45%

 

For full details, visit the NSW office of State Revenue at https://www.osr.nsw.gov.au/taxes/payroll/

 

Our Development Team is investigating the issue.

 

Solution

You will have to manually calculate the Payroll Tax Due:

Total Included Amount:  60,000   (from the State Payroll Tax Detail report)

Less threshold:              55,885   (31-day monthly threshold)

Taxable Amount:             4,115

Percentage:                     5.55%  (July – Dec 2010 payroll tax rate)

Payroll Tax Payable:        228.38

 

You should note your diary to change the percentage to 0.0545 before starting the first pay in January 2011.

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