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Business Condition Changes to Report for Payroll Tax

Owning a business is about more than just handling products and services. It also involves working with a trusted team as the company grows to address different concerns. Outsourcing is another option that can get things done. Company finances, for example, can be entrusted to reputable accountants.


Payroll Tax


When someone is a registered payroll tax self assessor, it's necessary to lodge a report about 'change of status' for payroll tax within three weeks (21 days). If there's a change in mailing address where legal documents will be sent, it should be done within a month (four weeks). It's all part of the necessary accounting process for businesses.


Final Return


A final return should be lodged within three weeks (21 days) if, in the midst of a financial year:


  • Administrator (whether receiver and manager or liquidator) gets appointed or ceases

  • Someone is becoming, or no longer is, a group member

  • Someone is becoming, or no longer is, the DGE (designated group employer) for a certain group

  • There is no more employment ongoing in Australia for the rest of the year or next financial year


There will be instances when you'll pay out taxable wages again until the financial year's end, even after a change of status. An annual return still needs to be lodged then. The annual return will not take into account any tax paid or payable or wages within the final period. On the other hand, there will be no need for lodging an annual return if taxable wages aren't paid for the rest of the financial year.


Let's look closer into the changes that require a report:


Ceasing to Employ


A final return is unnecessary for people that cease to employ in Queensland even if there are other states or territories where you still employ. That doesn't count as a change of status. Instead, inform the Queensland government and lodge 'nil' periodic returns for the rest of the financial year. The annual return should still be lodged by 21 July.


Becoming (or No Longer Are) a Group Member


When an employer is no longer part of a group or becomes a group member, that constitutes a change of status. It's important for a final return to be lodged at this point, covering the period until the change of status takes effect. Any shortfall within that time frame must be addressed as well, and the payroll tax for that period needs to be calculated. If the change of status occurs within group employers, the affected members are the only ones that need to lodge a final return.


Becoming (or No Longer Are) the DGE


No longer being a DGE happens when a group member is added or removed, or if the group members tell the Queensland government through writing that you're no longer the DGE and they write back consenting to it. A substitution situation may also arise, wherein group members pick a replacement as soon as your being the DGE ends.


Final returns for someone ceasing to be the DGE should have a breakdown of final period wages, payment of final liability or shortfall within that period, and details of wages either paid or payable by group members within the final period.


Conclusion


When there is a change in business conditions, payroll tax lodging must be updated. Change of status can make a difference, and the government needs to know. Final returns should be lodged in cases such as someone becoming or no longer being the DGE and someone becoming or no longer being a group member.


Need to work with a small business accountant on the Gold Coast? Contact New Wave Accounting today! We provide end-to-end accounting and bookkeeping services that help scale and grow businesses.


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