Nov 17, 2016
Payroll Tax arises in SA when wages exceed the current $600,000 threshold, and is calculated at 4.95% on the excess above the threshold.
- The rebate provides a payroll tax savings for employers with taxable payrolls of less than or equal to $1.2 million;
- Where employers are grouped for payroll tax purposes, if the total of the group’s taxable payroll exceeds the $1.2 million, no group members will be entitled to the rebate;
- The rebate will be paid in the first half of each financial year from 2016/17 to 2019/20 based upon the previous year’s taxable payrolls submitted in the annual reconciliation;
- Employers must be registered for payroll tax as at 30 June of the relevant financial year;
- The rebate is phased out for eligible employers with taxable payrolls of between $1 million and $1.2 million; and
- Employers are not eligible for any rebate until finalisation of their relevant annual payroll tax reconciliation.
Calculation of Rebate:
Annual Taxable Payroll Statutory Rate Rebate Rate
($) (%) (%)
600,000 to 1,000,000 4.95 2.45
1,000,001 to 1,050,000 4.95 1.95
1,050,001 to 1,100,000 4.95 1.45
1,100,001 to 1,150,000 4.95 0.95
1,150,001 to 1,200,000 4.95 0.45
Above 1,200,000 4.95 -