PAYROLL TAX ACT 2007 - SCHEDULE 2A

PAYROLL TAX ACT 2007 - SCHEDULE 2A

SCHEDULE 2A – Special provisions for financial years 2008-2010

(Schedule 2, clause 3A)

Part 1 - Introduction

1 Application of Schedule

This Schedule applies for the purpose of ascertaining the payroll tax payable by an employer in relation to a financial year commencing on 1 July 2008, 2009 or 2010.

2 Determination of amount of payroll tax

(1) The amount that an employer is liable to pay as payroll tax for any period is to be determined in accordance with this Schedule.

(2) The amount of payroll tax that an employer is required to pay in relation to a return of wages in respect of a period is the amount determined for that period in accordance with this Schedule.

3 Determination of payroll tax for full financial year

The amount that an employer is liable to pay as payroll tax for a financial year is to be determined as the sum of the amount that the employer is liable to pay as payroll tax for the first half of the financial year and the amount that the employer is liable to pay as payroll tax for the second half of the financial year, with those amounts determined in accordance with this Schedule.

Note : This method of adding the payroll tax payable for 2 half-years accommodates the financial years commencing on 1 July 2008, 2009 and 2010, in which the rate that applies in the first half of the year is different from the rate that applies in the second half of the year.

4 Definitions

In this Schedule--


"annual threshold amount" means the threshold amount under Schedule 1 for the financial year of which the relevant period forms part.


"financial year" means a financial year commencing on 1 July 2008, 2009 or 2010.


"half-year" means the first or second half of a financial year (with the first half comprising the months July to December and the second half comprising the months January to June).


"N" is the number of days in the relevant period.


"R" has the same value as in Schedule 1 in respect of the relevant period.


"relevant period" means the period to which the calculation of the relevant payroll tax relates.


"TA" or
"threshold amount" for a relevant period is the amount calculated by multiplying the annual threshold amount by N/365.

Note : Clauses 9 and 14 provide that when wages for half a financial year are less than the threshold amount for that half-year, the unused portion of that threshold amount is to be allocated to the other half of the financial year.

Part 2 - Employers who are not members of a group

5 Application of Part

This Part applies only to an employer who is not a member of a group.

6 Definitions

In this Part--


"C" is the number of days in the relevant period in respect of which the employer paid or was liable to pay taxable wages or interstate wages (otherwise than as a member of a group).


"IW" represents the total interstate wages paid or payable by the employer concerned (otherwise than as a member of a group) during the relevant period.


"TW" represents the total taxable wages paid or payable by the employer concerned (otherwise than as a member of a group) during the relevant period.

7 Payroll of employer not more than threshold

An employer is not liable to pay payroll tax for a relevant period if the total taxable wages and interstate wages paid or payable by the employer (otherwise than as a member of a group) during that period is not more than the
"employer's threshold amount" for that period, being the amount calculated in accordance with the following formula--

8 Payroll of employer over threshold

If the total taxable wages and interstate wages paid or payable by an employer (otherwise than as a member of a group) during the relevant period is more than the employer's threshold amount for that period, the employer is liable to pay as payroll tax for that period the amount of dollars calculated in accordance with the following formula--

9 Increase in half-year threshold for threshold credit from other half-year

(1) If the total taxable wages and interstate wages paid or payable by an employer during a half-year otherwise than as a member of a group (
"the half-year total" ) is less than the threshold amount for that half-year (
"the half-year TA" ), the difference between the half-year total and the half-year TA is to be added to the threshold amount for the other half-year of the financial year concerned to arrive at an
"adjusted TA" for that other half-year.

(2) When there is an adjusted TA for the second half of a financial year, the threshold amount for any relevant period in that second half is the amount determined by multiplying the adjusted TA by N/181.

(3) When there is an adjusted TA for the first half of a financial year, that adjusted TA is the threshold amount that is to be used to determine the amount that the employer is liable to pay as payroll tax for that first half (as part of the determination of the amount of payroll tax payable for the full financial year) but is not to be used to redetermine the amount of payroll tax for any relevant period that is part of that first half.

Part 3 - Groups with a designated group employer

10 Application of Part

This Part applies only to an employer who is a member of a group for which there is a designated group employer.

11 Definitions

In this Part--


"C" is the number of days in the relevant period in respect of which at least one member of the group paid or was liable to pay (as a member of the group) taxable wages or interstate wages.


"GIW" represents the total interstate wages paid or payable by the group concerned during the relevant period.


"GTW" represents the total taxable wages paid or payable by the group concerned during the relevant period.


"TW" represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant period.

12 Payroll of group not more than threshold

None of the members of a group is liable to pay payroll tax for the relevant period if the total taxable wages and interstate wages paid or payable by the group during that period is not more than the
"group threshold amount" for that period, being the amount calculated in accordance with the following formula--

13 Payroll of group over threshold

(1) If the total taxable wages and interstate wages paid or payable by a group during the relevant period is more than the group threshold amount for that period, payroll tax is payable as provided by subclauses (2) and (3).

(2) The designated group employer for the group is liable to pay as payroll tax for the relevant period the amount of dollars calculated in accordance with the following formula--

(3) Each member of the group (other than that designated group employer) is liable to pay as payroll tax for the relevant period the amount of dollars calculated in accordance with the following formula--

14 Increase in second-half TA for first-half credit

(1) If the total taxable wages and interstate wages paid or payable by a group during a half-year (
"the half-year total" ) is less than the threshold amount for that half-year (
"the half-year TA" ), the difference between the half-year total and the half-year TA is to be added to the threshold amount for the other half-year of the financial year concerned to arrive at an
"adjusted TA" for that other half-year.

(2) When there is an adjusted TA for the second half of a financial year, the threshold amount for any relevant period in that second half is the amount determined by multiplying the adjusted TA by N/181.

(3) When there is an adjusted TA for the first half of a financial year, that adjusted TA is the threshold amount that is to be used to determine the amount that the employer is liable to pay as payroll tax for that first half (as part of the determination of the amount of payroll tax payable for the full financial year) but is not to be used to redetermine the amount of payroll tax for any relevant period that is part of that first half.

Part 4 - Groups with no designated group employer

15 Application of Part

This Part applies only to an employer who is a member of a group for which there is no designated group employer.

16 Definitions

In this Part--


"TW" represents the total taxable wages paid or payable by the employer concerned (as a member of the group) during the relevant period.

17 Calculation of payroll tax

Each member of the group is liable to pay as payroll tax for the relevant period the amount of dollars calculated in accordance with the following formula--