Gradual Diminishing Tax-Free Threshhold for WA Payroll Tax

Legacy KB ID: 5348

Question

Does Reckon Accounts account for the new Gradual Diminishing Tax-Free Threshhold introduced in Western Australia on 1 July 2015?

Answer

No.  You will need to export your Payroll Tax calculation to Excel and adjust the threshold there to calculate the correct amount of payroll tax

The Issue

On the 1st of July 2015, the Western Australian government introduced a gradual diminishing tax-free threshold for companies reporting total annual payrolls between the lower threshold of $800,000 and the upper threshold of $7,500,000 where no tax-free threshold applies.

For further information refer to the WA government’s Payroll Tax guide at:

https://www.finance.wa.gov.au/cms/uploadedFiles/State_Revenue/Pay-roll_Tax/Forms_and_Publications/Payroll-Tax-Employer-Guide.pdf

This change to the calculation will be considered for a future release of Reckon Accounts Business Range.

Workaround

Export calculations to Excel and make adjustments there.

If you would like an estimate of your payroll tax liability, you can use the payroll tax calculator available on the Department of Finance website.

Need more help?

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