Payroll tax and bonuses – timing of payments can matter

Foreign employee performance bonuses may be subject to Australian payroll tax, even if the employee has spent limited time in Australia.

Employers should consider the timing of employee payments in any cost analysis when bringing foreign employees to Australia to work.Payroll tax legislation includes provisions that impose liability upon employers on a monthly basis.Specific provisions confirm that where an amount is paid to an employee in a particular month, such amounts are deemed to be in relation to the services provided by that employee in that month.Recent examples have arisen that highlight potential challenges for empl...

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Authors: Daniel Hodgson, Emma Finch,

Published Date: 17 December 2019