Payroll tax - frequently asked questions
Here are answers to some frequently asked questions about payroll tax and PTX Express.
- How do I register?
- What are my payment obligations?
- How do I lodge a monthly return?
- When is my monthly return due?
- What payment options are available?
- Can I make changes to a monthly return once it is lodged?
- How do I lodge the annual reconciliation?
- What happens if my business lodges a 'nil' payroll tax return or fails to make a payment or complete its electronic annual reconciliation (e-AR)?
- What happens if my business makes a late monthly or e-AR payment?
- How do I update company records?
- How do I claim a refund?
- Is there a full deduction if a business or group employs in other states?
- Are WorkCover payments taxable?
We process your application to register after you have submitted your registration online. Most applications are completed within 14 days, but it may take up to 30 days or more if we need more information.
Once your registration is completed, we send you a confirmation letter with your unique customer number and instructions on how to log in to PTX Express.
You can then use PTX Express to manage your payroll tax.
Each employer registered for payroll tax in Victoria must pay payroll tax monthly unless we approve an annual payment.
We generally approve annual payments only if the tax payable for the previous financial year and the estimated tax payable in the following financial year is less than $40,000.
If approved, you need only lodge an annual reconciliation. We retain the right to review your lodgement and payment cycle at any time.
You must lodge your monthly return and pay online by:
- Logging in to PTX Express and selecting from the menu to lodge a monthly return.
- Selecting the correct liability period (such as 1 July 2019 - 31 July 2019).
- Entering your wages.
- Lodging your return.
Payment options are displayed once you have lodged your return.
You must lodge and pay your monthly return on time or penalty tax and interest may apply.
Returns must be lodged and paid within seven days after the close of the month to which the return relates. If the seventh day falls on a weekend or public holiday, your return and payment is due on the next business day.
For example, the payroll tax on wages paid in January must be paid to us by 7 February or the next business day if 7 February falls on a weekend or public holiday.
If no tax is payable for a particular month, your business is required to lodge a 'nil' return via PTX Express.
Pay online through PTX Express
The quickest and simplest way to pay is through PTX Express using our secure Westpac-controlled online payment option.
Once you have registered your BSB and account number in PTX Express and upon your approval, we can debit your monthly return from your account and end of year annual reconciliation payments. A dual payment authorisation feature is also available.
You can also pay by EFT, BPAY and credit card. Once you have lodged your monthly return or annual reconciliation, you can see the payment details for each option.
PTX Express provides you with a unique reference number with each monthly return or annual reconciliation so that you can allocate the payment to the correct return or reconciliation.
You can correct a previously lodged monthly return in PTX Express by lodging a replacement monthly return to override it.
Log into PTX Express, select 'Lodge a monthly return' from the PTX Express menu, select the correct return period (such as 1 July 2019 - 31 July 2019) and choose 'Lodge a replacement monthly return'.
You can then lodge the correct wage details and submit your changes.
You must use PTX Express to lodge your annual reconciliation and pay online (an e-AR):
- Log in to PTX Express.
- Select 'Annual Reconciliation' from the menu to lodge an e-AR.
- The relevant financial year should be displayed, select 'Begin' from the Actions field'.
- Review your details, including your employer type and your employing period during the financial year.
- Enter your wages.
- Review your payroll tax payments made during the financial year for the reconciliation period.
- Review the calculation for your amount of tax payable or amount overpaid.
- Lodge your e-AR by selecting the 'Lodge' button on the Lodgement page.
A lodgement reference number and payment options are displayed once you have lodged your return.
If you need more information on the e-AR, please refer to the e-AR frequently asked questions (FAQs).
What happens if my business lodged a 'nil' payroll tax return or fails to make a payment or complete its e-AR?
If your business fails to comply with its monthly tax obligations by the seventh of any month, we issue a default assessment including a penalty for non-payment and interest on the unpaid amount.
The amount of penalty tax varies between 5 per cent and 75 per cent of the tax that should have been paid depending on the circumstances for your failure to pay.
Similarly, if you do not complete your e-AR at the end of the financial year and fail to make payment, you will be issued with a default assessment.
You may be issued a late payment assessment with penalty tax and interest.
You must tell us if your company details change during the financial year. This includes addresses (postal, trading and electronic), details of a contact person, wage estimates, grouping changes, legal name or employer status.
Your company records can be easily and quickly updated in PTX Express.
You can claim a refund on a monthly return for the current financial year by logging into PTX Express, using the 'Apply for Refund' link in the menu and providing the requested details.
If your refund relates to the most recent annual reconciliation, you need to edit your e-AR and relodge it with your updated wage details. You will be able to claim your refund at the end of this process.
If you want to apply for a refund for any other years, please use the 'Apply for a Refund' link in the menu and provide the requested details.
Employers or groups of employers which also pay interstate wages are entitled to a partial deduction in Victoria. This partial deduction is the maximum deduction adjusted by the ratio of the total Victorian taxable wages to total Australian taxable wages. Estimates are provided by the employer in the prior year's annual reconciliation or at the time of registration.
Interstate Pty Ltd provided estimates of wages for 2019-20 as:
The monthly deduction is calculated:
$54,166 (monthly threshold) x $400,000 ÷ $800,000 = $27,083
If the gross taxable Victorian wages for Interstate Pty Ltd for October 2019 were $35,000, the tax payable would be:
($35,000 - $27,083) x 4.85%* = $383.97
*2.425% if located in regional Victoria
In the annual reconciliation return all employers recalculate the full year's deduction based on actual Victorian and Australian wages. The annual reconciliation is completed electronically and can be accessed from mid-June via PTX Express.
Any payments of compensation made by WorkCover are not taxable whether made by the employer or the insurer. This exemption is subject to a WorkCover claim being lodged and approved by the insurer.
The exemption also covers the first 10 days compensation which the employer is usually required to pay. These amounts are deemed to have been received and as such the exemption can be claimed from day one of a claim.
Any top up or make up pay contributed by the employer to top the employee up to their pre-injury earnings does attract payroll tax.