Understanding State Payroll Tax Setup for Australia

To determine your organization's state tax liability in each Australian state and territory, you must first set up your system to calculate state tax liability correctly. You use the Australia State Payroll Tax Workbench program (P75A0400) to access programs to complete the setup for each state. Setup tasks include:

• Defining which pay types, deductions, and benefits are eligible to be included in state tax liability calculations.

• Defining the tax-free thresholds, tax rates, and effective dates for each state.

• Specifying which proration formula to use when you are calculating tax liability for each state.

• Setting up company groups for multicompany organizations, and specifying the designated group employer (DGE), if necessary.