The Payroll Tax Assessment Act 2002 has been amended to introduce a gradual diminishing tax-free threshold.
From 1 July 2015, the tax-free threshold gradually phases out for employers or groups of employers with annual taxable wages in Australia between $800,000 and $7.5m. Employers with annual Australia-wide taxable wages of $7.5m or more will pay payroll tax on their entire taxable wages.
Your payroll tax liability is calculated by the Office of State Revenue (OSR) after you have declared your taxable wages through Revenue Online (ROL).
ISSUE DESCRIPTION The seeded EPYAUPYT_XML: Payroll Tax Report by Legal Employer (Australia) (XML) report does not appear to be taking this state requirement into account. The existing global formula for WA_STATE_TAX_THRESHOLD still offsets the $66667 from the total payroll taxable payable calculation.
Global Value still being applied: WA_STATE_TAX_THRESHOLD for amount $66667 The state payroll tax dictates additional conditions, and client is now no longer applicable to receive any.
TEST DATA Total Taxable Income = 4,160,666.91 Total Payroll Tax Payable = 225,170.00
Frequency = Monthly Client Status = Local Group Start Date = 01-JUL-2015 End Date = 31-JUL-2015 WA Taxable Wages = $4,160,666.91 ------------- WA Taxable Wages = $4,160,666.00 Tax Rate = 5.5% Tax Calculated = $228,836.63
CALCULATIONS / PROOF Actual Payroll Tax Calculated + (Threshold x Tax Rate) = 225,170.00 + (66,667 x 5.5%) = 225,170.00 + 3,666.685 = 228,836.67 = Expected Tax Calculated (228,836.63)
This proves that the State Tax Threshold is still being factored into the calculations, when it should not be.
STEPS TO REPRODUCE (1) Run Concurrent Request: Payroll Tax Report by Legal Employer (Australia) (XML) Parameters: > Date = 31st July 2015 > Legal Employer = KCGM > All other parameters are set to default
(2) Review outputs
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