If you own or run an Australian business, you’re probably familiar with payroll tax. You know the one—it’s that big chunk of money you need to withhold from your employee’s wages each year.
If you’re new to the business world, understanding what payroll taxes are—and whether or not you need to pay them—can be challenging.
Keeping track of your finances is essential for any business, large and small. This is particularly vital for small companies, where individual sales and expenses can make far more of an impact on their profits and losses than they would in huge enterprise businesses.
One of the forms of reporting and documentation that should be top of your list of priorities is your profit and loss statement – also referred to as a P&L.
If you run a business, how to calculate payroll taxes is a key skill to have. Even if you have no employees, you will still need to calculate how much payroll tax you’ll have to pay as an individual.
Here we take an in-depth look at payroll tax, including information on what it is, different methods of calculating payroll taxes and how feasible it is to manage your payroll tax calculations in-house.