Employment Taxes

Expert support to navigate a complex employment tax landscape

Employment tax is an evolving landscape. Employers need to ensure their tax compliance and employee obligations are up to date, and this can be both time consuming and costly - and a risk to get it wrong. To cover your compliance requirements and control your costs, you need a team focussed on aligning your business and commercial needs with the regulations.

Need help with employment taxes?

The evolving nature of employment taxes makes it difficult for employers to keep up and ensure their compliance. BDO can help you stay compliant and confident in your tax processes.


How BDO can help

Our services include:

Pay-As-You-Go Withholding (PAYG)

  • Compliance reviews/health checks
  • Employee/contractor determinations
  • Non-resident directors
  • Variations
  • PAYG advice and consulting.

Fringe Benefits Tax (FBT)

  • Review and preparation of returns
  • Compliance reviews/health checks
  • FBT policies and manuals
  • FBT advice and consulting
  • Australian Taxation Office (ATO) audit representation
  • Salary packaging.

Superannuation Guarantee (SG)

  • Compliance reviews and health checks
  • Expanded meaning of “employee”
  • Availability of exemptions
  • SG advice and consulting.

Employee Share Schemes (ESS)

  • Assistance in the design of plans
  • Tax compliance and effectiveness reviews
  • Alternative executive remuneration arrangements
  • ESS employee guidelines
  • ESS advice and consulting
  • ATO audit representation
  • ESS reporting.

Payroll tax

  • Monthly payroll tax returns
  • Annual reconciliations
  • Audit representation.

Other employment taxes

  • Employment termination payments
  • Workers’ compensation.

If your Employment Taxes issues relate to expatriate or mobile employees you may also benefit from support from BDO’s specialists in Global Expatriate Services, Migration Services and Transfer Pricing (in respect of Base Erosion and Profit Shifting).

Employment tax terms glossary

What is PAYG withholding?

PAYG stands for ‘Pay As You Go’. PAYG withholding is a tax system in Australia where taxes are withheld from payments, such as the payment of salary by employers to their employees. The PAYG system is overseen by the ATO.

What is FBT?

FBT is an acronym of Fringe Benefits Tax. FBT is separate from income tax and is a tax paid by employers. This tax is paid on benefits provided by employers to employees, their families, or other associates.

Are you ready for FBT season? Learn about the recent changes to FBT and what the ATO looks for when assessing non-compliance >

What is salary packaging?

Salary packaging is where an employee enters into an agreement with their employer to forego future salary and receive fringe benefits or additional employer superannuation contributions instead. This may be financially beneficial for the employee. 

What is Super Guarantee?

Employers are required to make superannuation contributions for their employees, this obligation is called Superannuation Guarantee. The employers’ Superannuation Guarantee obligation is calculated as the superannuation contribution rate (11% for FY24, increasing to 12% for FY26) times the employee’s ordinary time earnings (which is subject to a quarterly cap). In circumstances where employers do not meet the compulsory Super Guarantee obligations, they are subject to a penalty called the Superannuation Guarantee Charge.

Navigating the new era: Same-day superannuation contributions >

What are Employee Share Schemes?

Employee Share Schemes (ESS) allow employees to acquire an ownership interest in the company they work for. This helps both public and private companies attract and retain employees and gives extra incentives for employees to share in their employer’s success.

Are you compliant with Employee Share Scheme (ESS) reporting obligations? >

What is payroll tax?

Payroll tax is different from PAYG, although they may sound similar. Payroll tax is paid by employers as a percentage of wages paid or payable to their employees and is enforced by state and territory governments in Australia. Not all businesses are required to pay payroll tax because the liability arises only where the employer’s total Australian wages exceed the relevant threshold of the state or territory.

What Australian employers need to know about their payroll tax obligations >

Contact us

Contact our team to discuss your needs using the request for service form. Alternatively, call us on 1300 138 991 to speak with an adviser in your nearest BDO office.

Meet our team

Ben Renshaw

Ben Renshaw

National Leader, Payroll Advisory
Partner, People Advisory, Global Expatriate Services & Employment Taxes
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Stefani Merlino

Stefanie Merlino

Partner, People Advisory, Global Expatriate Services & Employment Taxes
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