WA State Payroll and diminishing threshold amount in Payroll Premier

Legacy KB ID: 5358

Question

How do I adjust my WA Payroll Tax Liability calculation in Payroll Premier for the diminishing threshold amount that was introduced on 1 July 2015?

Answer

Extract the Taxable Wages amount and use the Payroll Tax Calculator to determine your Payroll Tax liability.

 

The Issue.

Recently the WA state government announced the eventual abolition of the threshold for the payment of Payroll Tax.  On 1 July 2015 a “diminishing threshold” was introduced to gradually take businesses from the threshold of $800,000 to zero over time. 

A full guide to the diminishing threshold is available here.

The effect is that the Payroll Tax Threshold is reduced by 8/67th.

Payroll Premier does not account for this diminishing threshold.

 

Adjusting your Payroll Tax calculation.

  1. Generate the Payroll Tax Report

  2. Scroll to the bottom of the last page to see your totals

  3. Manually calculate your Payroll Tax:

    1. Add the Gross, Payroll Tax Super and Payroll Tax Workcover to get your base amount

    2. Click this link for the WA state government Payroll Tax calculator:

    3.  (please note the disclaimer)

    4. Enter the required values and read off the Tax calculated.

 

 

Need more help?

Ask the Reckon Community at: https://community.reckon.com/reckon.

 


How did we do?

Related Articles

State Payroll Tax thresholds and rates incorrect in Payroll Premier 2011/12
NSW State Payroll Tax threshold showing the incorrect amount in QuickBooks 2011/12
How To: Registering Reckon Payroll Premier application
Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)