MANAGEMENT

Detailed explanation-1: -The due date for the December 2022 monthly payment has been extended to Monday 16 January 2023. The payroll tax rate reverted to 5.45% on 1 July 2022. The rate had been reduced to 4.85% for the 2021 and 2022 financial years as part of the NSW Government’s commitment to assisting businesses through COVID.

Detailed explanation-2: -The payroll tax rate is: 4.75% for employers or groups of employers who pay $6.5 million or less in Australian taxable wages. 4.95% for employers or groups of employers who pay more than $6.5 million in Australian taxable wages.

Detailed explanation-3: -Payroll taxes are the taxes employees and employers pay on wages, tips, and salaries. These taxes include federal, state, and local taxes, as well as FICA taxes, which are taxes for Social Security and Medicare.

Detailed explanation-4: -The federal government levies payroll taxes on wages and self-employment income and uses the revenue to fund Social Security, Medicare, unemployment insurance, and other social insurance programs. Payroll taxes have become an increasingly important part of the federal budget over time, as the chart below shows.

Detailed explanation-5: -Customers need to ensure they are calculating their payroll tax correctly with the tax rate of 5.45% for the 2023 financial year.