We are committed to working with employers that have identified underpayment of wages. Underpayment of wages may result in additional payroll tax liabilities for employers with a wage bill exceeding the monthly threshold.
While the SRO actively pursues cases where employers may not be complying with their obligations, our aim is to promote voluntary compliance by employers. Voluntary disclosures are treated more favourably than when the SRO identifies non-compliance.
Make a disclosure
We encourage employers that have identified an underpayment of wages to disclose these amounts for payroll tax purposes as soon as possible.
What to disclose
We would like to know:
- the nature of the underpayment.
- the period to which it relates.
- whether back payments have been made or remediation is underway.
- are there any court orders in place or legal proceedings underway?
- is there an enforceable undertaking in place?
- what corrective action has been implemented to avoid a recurrence.
Disclosure expectations
We encourage a disclosure with this office at the earliest opportunity once an underpayment of wage is identified. Once we have received your disclosure, we will help guide you through the requirements to comply with your obligations.
More information about voluntary disclosures
Penalties and interest
Our aim is to promote voluntary compliance, which is why voluntary disclosures of underpaid payroll tax are treated more favourably than those detected by the SRO through its compliance activities.
Voluntary disclosures made before an investigation has commenced attract market interest and the lesser of either 8% per annum premium interest, or penalty tax of either:
- 5% (for taking reasonable care); or
- 15% (for intentional disregard).
If wage underpayments are identified due to SRO compliance activities, penalty tax of 20% (if a full disclosure is made after the investigation has commenced) and up to 75% (for intentional disregard) will be imposed.
