Payroll Tax: Simplifying the Complexities of the Paycheque - a series of 5 video webinars

Program 1: Payroll Tax and Taxable Wages: Avoiding Costly Mistakes

Wages and payments to employees are subject to payroll tax. However, there has been widespread confusion amongst accountants and taxpayers as to what constitutes taxable wages for payroll tax purposes. This session seeks to provide accountants with guidance in this area, with the following areas examined:

• What payments are treated as taxable wages?

• Which payments are excluded (i.e. exemptions)?

• Treatment of payments to business owners

• Interaction of the employee/contractor dichotomy and the concept of taxable wages

• Analysis of various jurisdictions (i.e. definitions and thresholds)

Program 2: Commissioner of State Revenue v Optical Superstore – Clarity or Confusion?

The recent Victorian Supreme Court decision in Commissioner of State Revenue v Optical Superstore has certainly resulted in a change in the payroll tax landscape and significant anxiety for many clients. The following session considers the practical implications of the decision and how the landscape has changed. The following areas will be examined:

• Practical analysis of the decision

• Unpacking the “relevant contract” provisions and possible exclusions from the rules

• Practical implications of the decision on various industries (e.g. medical and allied health)

• Implications for commission, “fee for service”and labour hire arrangements

• Practical tips for drafting contracts to avoid application of the relevant contract provisions

• What industries are being targeted by the State Revenue authorities as a result of the decision?

Program 3: Employee vs Contractor – Master of your Domain or Servant of Another?

There has always been widespread confusion amongst employers and accountants as to whether a person providing labour services is a contractor or employee. Uncertainty in this area has potentially serious ramifications as employers may be neglecting their employer obligations. This session seeks to help practitioners understand the distinctions between employers and contractors. The following areas will be examined:

• Employees and contractors under the common law

• “Deemed employees”

• The “Master/Servant” relationship

• Employer obligations (e.g. Worker’s Compensation, Fair Work legislation, Jobkeeper, Super Guarantee) – do these imposts form part of the tax base for calculating tax payable?

• Inconsistencies and similarities between regulatory regimes

• The “Relevant Contract” and “Employment Agency” provisions

Program 4: The Payroll Tax Grouping Provisions – In or Out?

The payroll tax grouping provisions prevent employers from reducing their payroll tax liability through the use of multiple entities to ensure that each entity’s payroll is below the taxable threshold. Unfortunately, the rules are confusing and vague and often result in unintended consequences (e.g. unrelated entities being grouped for payroll tax purposes). This session will assist advisers to navigate the rules. The following areas will be examined:

• What is a payroll tax group?

• The four bases for grouping (e.g. related companies, common employees, common controller and controlling interest)

• Practical implications of payroll tax grouping

• Obligations of the Designated Group Employer

• Practical analysis of the exercise of the Commissioners discretion to exclude an entity from a group

• Implications of having “interstate” employees

Program 5: Managing a Payroll Tax Review or Audit

Dealing with a payroll tax review or audit can be a daunting task. A lack of understanding of the rules, processes and procedures can often lead to extremely unfavourable outcomes for clients. This session examines this often neglected area and covers the following areas:

• Access and investigative powers of the Commissioner of State Revenue

• Practical tips, rules and procedures for managing a review or audit (e.g. how to limit the scope and respond to revenue authorities appropriately)

• Assessments, objections and appeals

• Penalties and how to mitigate them

• The scope of the Commissioner’s discretions

• The role of legal professional privilege during a review or audit