The following payroll tax exemption amounts were altered 1st July 2014:
• accommodation allowance increased to $253.25 per night
• motor vehicle allowance increased to 77c per kilometre.
It is important that employers are aware of what exemptions are available. Most of the allowances paid to employees are included in taxable wages for payroll tax. With the rise of travelling employees these allowances will increase the amount of payroll tax liabilities.
The following allowances may give rise to exemptions (which will in turn reduce the amount of the payroll tax liability):
• Motor Vehicle Allowance
• Accommodation Allowance
• Living away from home Allowance
It is important to note that not 100% of the allowance may be exempt and there is specific reporting required to calculate the exemption. To ensure you are calculating your payroll tax obligations correctly please contact the office and we can assist you with initial calculations.