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payroll tax deductibility for income tax calculation

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The company calculates income tax on the accrual basis. Is NSW payroll tax expense deductible regardless if paid or not? Or can the company claim only the payroll tax paid in the financial year (like super)?

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Former Community Support

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Hi @MarieLA

 

Thank you for post.

 

Pay-roll tax is deductible in the year in which it is incurred, meaning the year in which the wages are paid or payable.

 

It does not matter if the employer pays the tax in a later year either voluntarily, or as the result of a default assessment being issued. I refer to: Income Tax Assessment Act 1997, section 8-1 and Claiming a tax deduction for workers' salaries, wages and super contributions pages on our ATO website.

 

I hope this information helps.

 

Regards

DebC

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @MarieLA

 

Thank you for post.

 

Pay-roll tax is deductible in the year in which it is incurred, meaning the year in which the wages are paid or payable.

 

It does not matter if the employer pays the tax in a later year either voluntarily, or as the result of a default assessment being issued. I refer to: Income Tax Assessment Act 1997, section 8-1 and Claiming a tax deduction for workers' salaries, wages and super contributions pages on our ATO website.

 

I hope this information helps.

 

Regards

DebC