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South Australian deduction entitlement

The maximum annual deduction entitlement available in South Australia is $600,000.

Employers are entitled to a deduction amount which is subtracted from their wages paid.

Let’s look at a simple example:

Business ABC employs only in South Australia and has taxable wages of $1.6m.

Their deduction entitlement is $600,000.

Payroll tax will be calculated on $1 million, that is $1.6 million - $600,000.

The annual deduction entitlement will be reduced if the employer:

• is part of a group;
• employs (or the group employs) in South Australia for part of the financial year; or
• Employs (or the group employs) in South Australia and another state and/or territory.

Part of a group

If you are a member of a group, only the Designated Group Employer (DGE) is entitled to claim the deduction entitlement.

If at the end of financial year the designated group employer has not used the groups full deduction entitlement they can allocate any unused deduction entitlement to one or more of the group members as part of the annual reconciliation process.

Employ for part of the financial year

As mentioned the deduction entitlement will be reduced if an employer did not employ for the full financial year.

You can see on the screen how the deduction entitlement may be adjusted for an organisation who only employs in one state or territory.

If the employer employs for a full financial year then they will be entitled to a full deduction entitlement. If the employer only employs for a portion of the financial year, the deduction entitlement will be adjusted based on the number of days they employed.

Employ in South Australia and another state and/or territory

If you employ in multiple jurisdictions your deduction entitlement will be adjusted.

The South Australian annual deduction entitlement is calculated by determining the proportion of the wages paid in South Australia divided by the total Australia wide wages which is then multiplied by South Australia’s maximum annual deduction entitlement, which is $600,000.

Let’s look at an example. South Australian Wages are $700,000 and the Australia wide wages are $2.1 million. As wages are paid in South Australia and interstate, the employer’s deduction entitlement will be adjusted. In this scenario, the employer would be eligible to claim an annual deduction entitlement of $200,000 in South Australia.

How do I find out what my deduction entitlement is?

RevenueSA Online will calculate your deduction entitlement based on the details provided in your annual reconciliation or if you have recently registered from the details provided at registration.

If you are on a monthly return cycle a monthly estimated deduction entitlement will deducted from your monthly total gross South Australian wages.

The monthly deduction entitlement is calculated by using the formula shown on the screen.

End

That brings us to the end of this educational video.

If you require any additional assistance please contact us.

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Opening

Welcome to RevenueSA’s educational video series. In this video we will look at how to calculate, lodge and pay a monthly payroll tax return.

This video is applicable to taxpayers who pay their payroll tax via an electronic payment authority.

Lodge a monthly return

Monthly payroll tax returns are due on the 7th of each month. For example your March return is due by the 7th of April.

Returns are accepted on the next business day when the 7th falls on a weekend or public holiday.

If you are unable to pay it is important you contact RevenueSA before the due date to discuss options available to avoid or minimise penalties.

Payroll tax return lodgement dates for the current financial year are available on RevenueSA’s website.

Monthly returns are lodged online using RevenueSA Online.

Your logon details have been provided to your organisation’s nominated administrators.

If you need assistance when using RevenueSA Online, a process guide on how to complete your monthly return is available from the Help link.

Select Monthly Returns from the Payroll Tax menu to lodge or view monthly returns.

Select the month you want to lodge a return for by clicking anywhere on that row.

Enter your wage component details for the month. If you have not paid any wages in a particular category, leave the field blank. Enter amounts in whole dollars only.

The estimated deduction entitlement will be populated automatically. You can change the deduction amount, but in most cases it will remain as calculated.

Once you have entered your wage components, the tax payable will be automatically calculated for the return period based on the estimated tax rate.

Review the information you have entered and the tax payable.

If you wish to save the calculation and authorise payment at a later stage, click on the Save button.

To proceed with the payment, select the Authorise Payment button.

The Payment Date field will default to today’s date. However, you can set your payment to be debited from your account on the due date.

For example, if you complete your July return on the 31st July you can enter a payment date between 31st July and the due date of the 7th of August.

Using this function will ensure that you pay on time and avoid receiving a penalty. This functionality can be useful if you are going on leave or have other work commitments on the due date.

Your nominated bank account will be displayed. If you have more than one nominated bank account, you can select it from the drop-down list.

To authorise the payment enter your password and click on Submit.

Once submitted, the summary details of your payment will appear.

A payment receipt will be created. Click on the link to open the receipt.

The Payroll Tax Return Declaration is displayed.

The payment will be automatically debited from your nominated bank account.

The payment will show under the Amount Paid column on the Monthly Returns screen.

What if I don’t have any payroll tax to pay for the month?

If you have no tax payable for the month a Nil return must still be lodged.

Simply follow the same steps as lodging a return. Once you have entered the wage components, if the tax payable displays zero, click on the Lodge Nil Return button and a nil return will be submitted to RevenueSA.

A message will display asking for you to confirm you are reporting zero (0) tax payable for the period.

Once confirmed a Payment Advice is created, click on the link to open the Advice.

The Payroll Tax Return Declaration for the return period will indicate no payment due.

Modify a Return

There may be circumstances where you need to modify a return, for example, you may need to update your wage details.

To modify a return, click on the month you wish to modify.

Your current return information is displayed. Any previous payments you have authorised for the return period will appear at the bottom of the screen.

Click on the Modify button.

Update wage components as required. The tax payable will be automatically recalculated.

Review the information you have entered and the tax payable.

This may result in you needing to make an additional payment. To proceed with the additional payment, select the Authorise Payment button.

Check the payment details including the payment date and bank account.

To authorise the payment, enter your password then click on Submit.

Once submitted the payment will be automatically debited from your nominated bank account and the summary details of your payment will appear at the bottom of the screen.

Click on the link to open the Receipt.

Alternatively, modifying your return may result in an overpayment. After updating your wage details ensure you click on the Save button.

If you have overpaid your monthly payroll tax, you have two options.

The first option, is to underpay the next month by the amount of the overpayment.

Alternatively, you can request a refund by emailing payrolltax@sa.gov.au with full details of the overpayment.

End

That brings us to the end of this educational video.

If you require any additional assistance please contact us.

[Music]

[Music]

Opening

Welcome to RevenueSA’s educational video series.

In this video we will look at how to calculate, lodge and pay a monthly payroll tax return.

This video is applicable to taxpayers who pay their payroll tax via EFT, BPay or cheque.

Lodge a monthly return

Monthly payroll tax returns are due on the 7th of each month. For example your March return is due by the 7th of April.

Returns are accepted on the next business day when the 7th falls on a weekend or public holiday.

If you are unable to pay it is important you contact RevenueSA before the due date to discuss options available to avoid or minimise penalties.

Payroll tax return lodgement dates for the current financial year are available on RevenueSA’s website.

Monthly returns are lodged online using RevenueSA Online.

Your logon details have been provided to your organisation’s nominated administrators.

If you need assistance when using RevenueSA Online, a process guide on how to complete your monthly return is available from the help link.

Select Monthly Returns from the payroll tax menu to lodge or view monthly returns.

Select the month you want to lodge a return for by clicking anywhere on that row.

Enter your wage component details for the month. If you have not paid any wages in a particular category, leave the field blank. Enter amounts in whole dollars only.

The estimated deduction entitlement will be populated automatically. You can change the deduction amount, but in most cases it will remain as calculated.

Once you have entered your wage components, the tax payable will be automatically calculated for the return period based on the estimated tax rate.

Review the information you have entered and the tax payable. If the information is correct, select the generate payment advice button.

A payment advice will be created. Click on the link to open the advice.

The payroll tax return declaration is displayed.

This payment advice provides 3 options for payment, EFT, BPay or by cheque. If paying by EFT or BPay, use the reference number shown on the payment advice. The reference number is unique to your monthly return and changes each month. Your payment will not be processed correctly if additional details are added to the reference such as the words Tax or the month.

If paying by cheque, please post the payment advice along with your cheque to the address provided.

What if I don’t have any payroll tax to pay for the month?

If you have no tax payable for the month a Nil return must still be lodged.

Simply follow the same steps as lodging a return. Once you have entered the wage components, if the tax payable displays $0 click on the Lodge Nil Return button and a nil return will be submitted to RevenueSA.

A message will display asking for you to confirm you are reporting zero tax payable for the period.

Once confirmed, a payment advice is created. Click on the link open the advice. The Payroll Tax Return Declaration for the return period will indicate no payment due.

Modify a Return

There may be circumstances where you need to modify a return, for example, you may need to update your wage details.

To modify a return, click on the month you wish to modify.

Your current return information is displayed.

Click on the modify button.

Update the wage components as required. The Tax Payable will be automatically recalculated. Review the information you have entered and the tax payable. If the information is correct, select the generate payment advice button.

A new payment advice is created and appears at the bottom of the screen.

If you have made previous payments for this return the modified return may result in you needing to make an additional payment. Additional payments are made using one of the payment options on the bottom of the payment advice.

Alternatively it may have resulted in an overpayment. If you have overpaid your monthly payroll tax you have 2 options. The first option is to underpay the next month by the amount of the overpayment. Alternatively, you can request a refund by emailing payrolltax@sa.gov.au with full details of the overpayment.

End

That brings us to the end of this educational video.

If you require any additional assistance please contact us.

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