Calculating State Tax Liability
After you have generated Australian state wage history, you can calculate the tax liability for an organization or company group. You use the Australia State Payroll Tax Workbench program (P75A0400) to calculate the tax amounts. When you access the Australian State Payroll Tax Workbench, you must enter this information to calculate tax liability:
The version of the Calculate AU State Payroll Tax program (R75A0400) to use.
Whether to calculate tax liability on actual or estimated wages.
Whether to calculate tax liability on a monthly or annual basis.
The year, and if applicable, the month for which to calculate tax liability.
If applicable, the number of days in the reporting period during which the company has been active.
After you specify the necessary information, you click the Calculate AU State Payroll Tax button on the Calculate Australia State Payroll Tax form. The system runs R75A0400, which uses the state wage history in the F75A0406 table, along with the rates, thresholds, company groups, and proration formulas that you set up to calculate the tax liability for the specified time period.
After R75A0400 calculates the tax amounts, the information is stored in the AU State Payroll Tax Liability History table (F75A0407). You can review tax history using the AU State Payroll Tax Liability History program (P75A0406), which you can access directly from the Australian State Payroll Tax Workbench.
You can also run the AU State Payroll Tax report (R75A0401), which you can use to print and review state tax liability history. R75A0401 uses data from the F07900 table to determine which month is the start of the calendar year. Therefore, before you run this report, you should verify that you have set up the fiscal date patterns for your organization using the Non-Calendar Tax Fiscal Date Patterns program (P07900). If you do not set up the fiscal date patterns for your organization, the system uses January 1 as the beginning of the fiscal year.
See Setting Up Tax Information for PDBAs.
To ensure that the AU State Payroll Tax Report displays the correct amounts, you must create two versions of R75A0401. Create one version to display only the monthly amounts. When creating this version, set the data selection so that the State Payroll Tax Period (AUSPTTP) is not equal to A. Create a second version to display only the annual amounts. When creating this version, set the data selection so that the State Payroll Tax Period(AUSPTTP) is equal to A.
If you calculate state tax liability on both a monthly and an annual basis, and you do not set the data selection for R75A0401 correctly, the amounts on your report might be overstated.