Payroll tax annual reconciliation and mental health and wellbeing surcharge
This video guides all relevant Victorian employers through the steps necessary to complete the 2021-22 annual reconciliation in PTXExpress. The video also focusses on the new mental health and wellbeing surcharge, which commenced on 1 January 2022. The mental health and wellbeing surcharge applies to employers with total Australian wages of $5 million, or more, for the period 1 January 2022 – 30 June 2022. For those employers, additional data is required to complete this year’s annual reconciliation.
The 2021-22 electronic annual reconciliation will be available from 27 June 2022 and must be completed, lodged and any outstanding payroll tax paid by 21 July 2022. This video steps you through the annual reconciliation process. It also includes instructions for those employers required to pay the new mental health and wellbeing surcharge.
The mental health and wellbeing surcharge came into effect from 1 January 2022. When a Victorian employer’s total annual Australian wages are $10 million or more in a financial year, they are required to pay a .5% surcharge on their annual taxable Victorian wages, in addition to the normal payroll tax rate.
When a Victorian employer’s annual total Australian wages are $100 million or more, they are required to pay another .5% surcharge on their annual taxable Victorian wages, in addition to the initial .5% and the normal payroll tax rate.
As this financial year’s mental health and wellbeing surcharge applies to the 6 months from 1 January 2022 to 30 June 2022, the two surcharge thresholds for that period are apportioned to $5 million and $50 million total Australian wages.
More information about the mental health and wellbeing surcharge can be found at https://www.sro.vic.gov.au/mentalhealthsurcharge.
To commence lodging your annual reconciliation log in PTX Express, select ‘Annual Reconciliation’, then ‘Begin’.
There are 6 steps in the annual reconciliation process:
- review your details
- enter your wages
- review your payments
- review the calculation
- lodge your return, and
- pay any outstanding amount or, in some cases, receive a refund.
On this screen review your details to ensure they are correct and up to date.
This includes checking your employer details, Victorian and interstate reconciliation periods and contact information. Once complete, select next.
Enter your wages for the full 2021–22 financial year or part year if you commenced or ceased employing in the 2021–22 financial year.
First, we’ll look at the process for employers whose last year’s wage estimates were above the mental health and wellbeing surcharge threshold. Following that we’ll look at the process for employer’s whose last year’s wage estimates were under the mental health and wellbeing thresholds, as the process is slightly different.
If your 2021-22 wage estimates in last year’s annual reconciliation, exceed the current mental health and wellbeing surcharge thresholds, PTX Express displays two Victorian wage columns. One for your total annual Victorian wages and the other for your total Victorian wages paid from 1 January 2022 to 30 June 2022. The second column is used to calculate your mental health and wellbeing surcharge.
Also, if 85% or more of your wages were paid to regional employees you are eligible for the lower payroll tax regional rate. Check this box if this is the case and enter your regional wages here, even if these figures are the same as your total Victorian wages.
More information about different fields is available by selecting any hover text icons.
Employers whose 2021-22 wage estimates were below $5 million, will have a single column displayed and this question asking if your wages in the second half of the 2021-22 financial year actually exceeded the apportioned threshold of $5 million.
If your wages for this period were below $5 million, select ‘No’ and continue to lodge your annual reconciliation as normal. Again, if 85% of your wages were paid to regional employees, check this box, and enter your regional wage figures.
If your wages from 1 January to 30 June this year exceeded $5 million select ‘Yes’ and enter your total Victorian wages in this column, and your total Victorian wages paid from 1 January 2022 to 30 June 2022 in the Mental Health and Wellbeing surcharge column.
For all customers who paid wages in other states or territories, enter those wage totals here and enter your interstate wages paid from 1 January to 30 June here. Next enter your 2022-23 wage estimates here, then select the states or territories you employed in and the state or territory your head office was in during 2021-22.
Step 3 allows you to review the payments you made during the 2021-22 financial year. If there is a discrepancy, you can amend your total here and provide details in this text box.
Additional information is required for members of a payroll tax group, select ‘Yes’ to provide the designated group employer with your wage and tax details, so they can complete the annual reconciliation for the whole group.
Step 4 shows the payroll tax calculation based on your gross Victorian taxable wages for the full financial year, less the tax-free deduction amount.
Next is shown the mental health and wellbeing surcharge calculation for employers whose total Australian wages exceeded either of the two thresholds mentioned earlier. These figures are based on the wages you entered at step 2.
If you’re eligible for the new jobs credit, you may receive a payroll tax credit of 10c for every dollar that your total wages increased from last year. This credit is shown here for eligible employers. You can find out more about the new jobs credit at sro.vic.gov.au/coronavirus.
Please note that if you are part of an eligible payroll tax group, the new jobs credit is applied to the designated group employer only.
The “Total” figure includes the sum of payroll tax and mental health wellbeing surcharge, if applicable, less any new jobs credit and payroll tax already paid.
To view your deduction Calculation and, if applicable, your mental health and wellbeing deduction calculation, select this link.
If you qualified for a new jobs credit, you can view the calculation by selecting this link.
If you’re receiving a refund, enter your details here.
Then select ‘next’
You can download a copy of the Annual Reconciliation summary PDF including any mental health and surcharge data by selecting this link.
Select this button to Lodge your annual reconciliation.
You must pay any outstanding balance in full by the due date of 21 July 2022. The payment options are shown here. We recommend the online payment option.
Once complete Select ‘Finish’.
For more information about the annual reconciliation please visit our website at sro.vic.gov.au.