Hi
We currently pay our non-executive directors via payroll. These are independent and member elected directors.
At the recent AGM, 4 new directors were elected and they wish to send us an invoice for payment of their director fees.
Do we need to withhold PAYG from this invoice and also will we have to remit super on this amount?
Thanks for any guidance on this.
Hiya @erebello 👋
Directors' fees are payments subject to witholding and are taxed using Schedule 1, as for salary and wages.
They are OTE therefore superable as per SGR 2009/2 paragraph 40.
They are mandatory to report via STP as per the ATO STP2 Employer Guidance.
Sure, they can send you an invoice but you must pay via payroll.
Deanne
Hiya @erebello 👋
Directors' fees are payments subject to witholding and are taxed using Schedule 1, as for salary and wages.
They are OTE therefore superable as per SGR 2009/2 paragraph 40.
They are mandatory to report via STP as per the ATO STP2 Employer Guidance.
Sure, they can send you an invoice but you must pay via payroll.
Deanne
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