payroll taxes

What are my payroll tax obligations?


Understanding Payroll Taxes Obligations

A state tax, which an employer or owner of an organization withholds on account of their employees. Payroll tax depends on the wages of the employees, working in an organiza-tion. Depending on the state where you are live, though every State and Federal authority receives payroll taxes.

State-Based Payroll Tax Responsibilities

Business owners may be accountable for payroll taxes if the total amount of wages, paid throughout Australia surpassed the state set payroll tax. In that case, an employer is liable to pay payroll tax. Those taxes which are paid from employee account mentions security taxes, medical taxes, state and federal taxes and other local income taxes. Some obliga-tions also include Federal Unemployment tax Act, which is only applicable on some countries. Though total gross wages, bonuses, commissions, extra payments termination payments,allowances and other payroll services are liable to be subjected payroll taxes.

Payroll Taxes and Employee Categories

There might comes circumstances when an employee is asked to perform job or services in one state only, then the obligation to payroll tax is to be made in that state. It is not re-quired to pay in the state, where the business is carried on. The tasks become difficult when the employees are performing services in various states. There are also some pay-roll tax reporting requirements, which are essential to be attained.

Multi-State Operations and Payroll Tax Reporting

One needs to fill monthly payroll tax form and completely fixed it with state tax office. That’s not enough. Company owners or employers are asked to submit an Annual Reconciliation Form on yearly basis and the form should report the paid annual taxable wages with bonuses. This form is actually a proof that you have paid certain amount of payroll tax on behalf of your employees to the state, and if you overpaid in some condition, the state would refund you the overpaid amount.

Multi-State Operations and Payroll Tax Reporting

When your payroll service exceeds state payroll tax, then it is a requirement of every business owner or employer to register for a payroll tax. Calculation of payroll tax can be achieved with payroll feature, available in the accounting software. Online registration is also at your convenience, where you can easily submit an application with the State tax office. Every state has different tax rates, which may vary with time. The employers are needed to determine the total payroll tax, that has to be paid within time. Several ac-countants in an organizations are expert in calculating amount of payroll tax, details of payroll services and other obligations

Annual Reconciliation and Overpayment Refunds

If, in any condition, the company owner or employer fails to withhold payment of payroll services or missed any scheduled payment, employer may be caught and gets liable for big fines and penalties. The above rules are also applicable on the small business owner, who does not have employees but he/she is self-employed. The employer has to pay an estimated tax on general income each quarter. Thus, there is vital importance of payroll taxes and payroll services in Australia; the determination to calculate payroll tax is also significant and it has to be paid on time to avoid penalty charges.

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