Threshold Proration Formulas

State payroll taxes are based on the amount of earnings that are paid in the state during a given period of time. Tax liability is calculated for each state using the wages that are paid during the period and specific calculation formulas that have been defined for each state.

Because each state calculates payroll tax differently, proration formulas have been defined so that the calculation of taxes for partial periods is accurate. You must specify which proration formula each state uses. Proration codes are stored in UDC 75A/PF. At the time of publication, these proration codes are the only valid codes, and should be assigned to each state as listed here:

State/Territory	Proration Code
Australian Capital Territory	ACT
New South Wales	NSW
Northern Territory	NT
Queensland	QLD
South Australia	SA
Tasmania	TAS
Victoria	VIC
Western Australia	WA