Payroll tax is a self-assessed, general purpose state and territory tax assessed on wages paid or payable by an employer to its employees, when the total wage bill of an employer (or group of employers) exceeds a threshold amount. The payroll tax rates and thresholds vary between states and territories.

Are you looking for payroll outsourcing services then BBW Business Services is Best Option for you................... 

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The payroll tax rates and thresholds vary between states and territories.

Returns are lodged, and payment of liability made, at an agreed frequency (monthly, quarterly, or annually) to the respective revenue office in the Australian state and/or territory in which the wage payment is deemed liable.

All Australian states and territories have harmonised a number of key areas of payroll tax administration. Information and Revenue Rulings on the harmonised key areas are accessible from this website.

Other areas of payroll tax administration differ between states and territories. Phone numbers to individual states and territory payroll tax areas are provided on the Contacts page and links to individual state and territory payroll tax websites are provided on the Links page.

Harmonised Payroll Tax information can also been viewed on the Video page and details of weekly Payroll Tax Information Webinars are provided on the Webinar page.

This news is reprinted from site http://www.payrolltax.gov.au/

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BBW Business Services provides a complete outsourced payroll solution that allows you to focus on your business. Since 2004 we’ve been helping make payroll easier for all our clients. We take care of your Payroll, Superannuation and Australian Tax obligations, by using our complete Business Process Outsourced Solution. We help manage your Award interpretation and your regulatory updates and compliance. We pride ourselves on being one of the most responsive and service focused outsourcing payroll companies in the industry.
One of the essential parts when running any company, no matter the size or type of industry, is learning how to run payroll and how to run it correctly. Last year, business owners paid a combined $4.5 billion to the Internal Revenue Service (IRS) in payroll tax penalties.

The following is an overview of how to run payroll, starting with how to calculate wages and avoid hefty fines if taxes aren't filed correctly. We’ll then dive deeper into different options business owners have when paying their employees or having others do it for them.

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Calculating Wages

When it comes to calculating wages, the employer must identify if the person they're hiring is considered an employee or an independent contractor because each kind fall under different rules. If identified incorrectly, the employer could have to pay back employment taxes.

Employers must then calculate the correct taxes on compensation, which can include everything from regular pay, overtime, vacation and sick pay to commissions, bonuses, and benefits, as well as worker's compensation.

Paying Payroll Taxes

Every employer must pay payroll taxes to the federal government for each employee it pays. Knowing the rules, due dates, and requirements of each tax is a task that can sometimes cause confusion if not properly understood. Here is a brief explanation of a few payroll taxes which are mandatory for most employers:

    Federal Income Tax – a payroll tax employers withhold from an employee's wages or salary, which is reported to the Federal government and applied to the employee’s calculated tax liability at the end of the year.
    Social Security and Medicare Taxes – a tax generally paid equally by the employer and employee in order to fund these entitlement programs.
    Federal employment Tax – an employer tax paid to the federal government to provide funds for paying unemployment compensation to workers who lost their jobs.

Paying Employees

The two most common ways companies pay its workers are by check and direct deposit. Direct deposit, the most popular way employees are paid in the United States (more than 60 percent of employees), offers many benefits to employers and employees, including cost savings and convenience.

The physical acts of writing, folding, and delivering checks are eliminated with direct deposit, which saves time that can be spent on other tasks. Paper costs are reduced for employers as well, helping a company save anywhere from $2.87 to $3.15 per check and become more environmentally friendly.

For employees, an electronic transaction means there's no longer a need to wait in line at the bank to deposit a check. Employees don't even have to be in the office to get paid. They can be on vacation or have a sick day and not have to worry about getting paid.

One method of payment that is often overlooked, though, is through a paycard. Most paycard programs don't require any maintenance fees or additional charges for employers. Just like direct deposit, paycards cut down on paper costs and can save money when it comes to producing and delivering checks.

Outsourcing Payroll

If an employer doesn't want to take the time and/or energy to learn all the nuances of running a payroll, there's always the option to hire an accountant or outsource to a payroll company.

Handing over payroll duties to an accountant who is trained in the matter can take a load off a business owner's shoulders. They're specifically trained to handle the task, so hiring one frees up the employer to concentrate on more important aspects of the company.

Some of the top reasons to outsource payroll outside of potentially saving time and money include greater security, monitoring changing in government regulations, and having the expertise of payroll professionals.

For beginners looking to gain more of an understanding on how to run payroll, Payroll 101 white paper is a great place to start. It's a guide for employers that tackles basic information every business owner should know.
- See more at: http://www.paychex.com/articles/payroll-taxes/the-ultimate-guide-to-running-payroll#sthash.CSsfjVC7.dpuf
Even the most meticulous and experienced professionals find that payroll can be a headache. Slap on a stiff penalty for a tax filing omission, and now we're talking a full-blown financially-induced migraine.
For many businesses, payroll services offer an attractive and valuable alternative to in-house processing. Chosen correctly, they provide a less expensive, simpler means of paying your employees, filing your taxes, and performing a host of other duties these companies' sales reps can't wait to tell you about.

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However, choosing poorly is like starting a new job you weren't right for in the first place -- it's a hassle to leave, but if you stay, you'll be perpetually frustrated.
Companies often initially process payroll themselves for any number of the following reasons:
  • they consider in-house processing to be more cost-effective than outsourcing
  • they are protective of wage information
  • they want to maintain control over payroll data to handle last-minute changes.
In truth, smaller firms with a stable, salaried staff and minimal changes in tax obligations may well be better off processing internally; it can certainly be more convenient and efficient if your needs are straightforward. But many ultimately discover it's not all that cheap -- especially when you factor in the time spent managing the process.
Plus, without the proper knowledge of payroll procedure and access to a sound payroll program, it's easy to make mistakes. Employees as well as federal, state, and local tax collection agencies need to be paid in full, on time, and in the proper manner. Usually, late payments are cause for monetary penalties.
Finally, using a payroll service can ease your mind. The Internal Revenue Service has reported that one out of every three employers has been charged for a payroll mistake, with total penalties reaching into the billions of dollars. And given the ever-changing nature of tax regulations, it's easy to make an error that can grossly affect your bottom line.
BuyerZone.com can help you select the right payroll service--as well as coach you on switching to a new one. In addition to offering up the nitty gritty on payroll services, we will simplify the industry and empower you with solid working knowledge to apply to your search for a provider.
When to outsource 
While the majority of U.S. businesses process paychecks internally, this is not always cost-effective. At minimum, internal payroll processing requires the purchase of a computer or manual accounting program and extensive training to use it. In addition, businesses need to keep up to date on changes in personnel, deadlines, and tax requirements on an ongoing basis.
Using a payroll service generally makes sense if your payroll changes with each pay period. If your company has employees working varying amounts of hours each week or has a significant turnover rate, a payroll service can be a time-saving and cost-effective alternative to internal processing. Using a payroll service can also be helpful if you have to pay payroll taxes for multiple states.
On the other hand, if your payroll expenses are quite stable, you may find handling payroll internally to be just fine for your needs.
Services provided 
A payroll company's basic services include calculating payroll and tax obligations for each employee, printing and delivering checks, and providing management reports. Paychecks can be issued on a weekly, bi-weekly, monthly, semi-monthly or yearly payroll basis.
In addition, payroll firms can offer services such as automatic check signatures, envelope stuffing, and direct deposit of checks. Payroll firms also issue W-2 forms for an additional fee of about $1 per form.
Many services now offer tie-ins with 401(k) and Section 125 mutual fund plans, allowing employees to designate automatic deductions from their paychecks. And for larger companies with more complex processing needs, some payroll providers have even begun to offer integrated HR software systems that track employee benefits-related information in addition to regular payroll data.
Choosing a provider 
Besides offering the services you require, a payroll service should offer a high level of customer service. Unlike some other business services, you will need to communicate regularly with your payroll provider.
If your sales representative will not be handling your account, make sure to speak with the customer service reps to ensure you will be satisfied. Also, consider requesting references from current clients to gain a better sense of the provider's level of customer service.
You should look for a payroll provider that is within reasonable driving distance, allowing you to pick up checks in case of an emergency. Also check that the company is bonded to ensure your company will not suffer from any potential financial mishandling.
Filing payroll taxes 
Many payroll services offer the option of filing state and federal payroll taxes for your business.
Typically, this service is offered at little or no cost. This is because the payroll provider will impound the tax due at the time paychecks are issued, earning interest on the funds until the money needs to be handed over to the government.
Most services assume responsibility for penalties resulting from incorrect filing; however, your company may be liable for any interest charges.
Keep in mind that many companies will not calculate local or city payroll taxes. Make sure to inquire about this if it is a significant issue for you.
Filing electronically 
With the Electronic Federal Tax Payment System (EFTPS) your company banks by phone with the government, transferring funds electronically rather than relying on checks to keep your "account up to date. If your company paid more than $200,000 in taxes in any year since 1998, then you are required to pay taxes electronically through EFTPS within the following two years. If for example, your company paid over $200,000 in taxes in 1999, then by January 2001, you must pay taxes electronically.
Many payroll services do offer electronic tax payments as part of their package, but in truth, electronic filing is not as difficult as it first appears, and businesses can easily enroll and learn how to do it on their own.
For more information, call EFTPS Customer Service Unit at 1(800) 945-8400 or 1(800) 555-4477.
Relaying information 
Each pay period, payroll data has to be "called in" to the service provider. This can be done via telephone, fax or computer.
The telephone is the traditional way of communicating information. The biggest problem is typically finding a mutually agreeable time for both people to be on the phone.
A fax machine eliminates scheduling conflicts and miscommunicated facts, but can bring up security risks concerning who receives the faxes and who will oversee the fax being sent.
Communicating payroll by modem is often the most efficient method, especially if you have a larger payroll.
Since 1998, several national payroll providers have offered payroll data transmission over the Internet. This simplifies payroll for many businesses, allowing them to download payroll information from any computer that is Internet accessible.
Pricing 
The market for payroll is competitive and reflects local market conditions. The basic service costs between $0.80 and $2.00 per check, plus a base account fee. The amount of the base fee depends on the pay period, with the less frequent payroll periods costing more. Over a year, however, less frequent payroll periods will cost less to maintain.
Added services such as tax filing and direct deposit can cost between $4 and $9 per payroll period. With direct deposit, there is often a nominal transaction charge per check in addition to the base fee.
Furthermore, there can be fees for adding or dropping employees, adjusting employee information, or setting up your account. Fees can differ dramatically across services, so it is important to check them out before signing up for a service.
Since pricing for services is relatively negotiable, try to avoid multiple unnecessary charges by knowing which service features you are most interested in before choosing a payroll company. In general, watch out for providers that offer low base processing rates with expensive add-on features.
Questions to ask
Features
. What does your basic service include?
. How quickly can you re-run a payroll if there is a mistake?
. How long does the average client stay with you?
Tax filing
. If I use your tax filing service, do you cover the penalties and/or interest charges?
. Do you provide filing assistance for local taxes?
. What is the cost to file taxes for multiple states?
Charges
. What is the cost for your service for one year, including year-end W-2 forms?
. How long are these rates in effect? What rate increase should I expect after that?
. If there are payroll data mistakes, how long will it take to reconcile the errors and what will it cost?
Questions for references
. How responsive is the provider to your questions?
. Have you had any problems with accuracy?
. Have you used another payroll service? If so, why did you switch?
Buying tips 
Look for a stable provider 
If a firm's only business is payroll, make sure to check the number of clients it supports. To ensure stability, a payroll service should ideally maintain at least several hundred clients.
Double-check the math when switching 
Transitioning to a new payroll firm rarely occurs without glitches. Be especially thorough in reviewing the first paychecks issued through the service as well as the money paid to cover tax obligations.
Watch prices over time 
Do not be swayed by services that waive charges upon sign-up. Often rates go up or charges start accruing after six months to a year of service.
This news is reprinted from site  http://www.entrepreneur.com/article/47340
Original source  http://www.entrepreneur.com/article/47340

 
 
Running a nonprofit means wearing many hats — one minute you’re fundraising to aid in your organization’s mission, the next you’re juggling business duties like human resources, accounting, taxes, and payroll. Because nonprofits usually don’t have a surplus of funds for outsourcing business services, they often try to tackle payroll and other bookkeeping duties on their own. But nonprofit payroll can be tricky due to various state laws, as well as tax regulations that may change from year to year. Read on to find out more about nonprofit payroll, and whether outsourcing can benefit your organization.

The Facts About Nonprofit Payroll

Taxes

While a nonprofit organization’s vision and goals may differ from that of a for-profit company, many of the business practices and processes are similar. Like a for-profit company, nonprofits are required to withhold state and federal taxes, Medicare, and Social Security from their workers’ payroll. Nonprofits must also match Medicare and Social Security, as well as pay federal and state unemployment insurance. In the state of California, nonprofits organized under the 501(c)(3) tax laws have the option of choosing whether to pay the same unemployment insurance rate as for-profit entities, or reimburse the state’s unemployment office for benefits paid to former employees. Some states also require nonprofits to pay disability taxes, and must follow their states’ workers’ compensation laws.

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Tax-Exempt Status

In order to be eligible for tax-exempt status under IRS Section 501(c)(3), your nonprofit must be considered a charitable organization — that’s how nonprofits are able to provide tax deductions to the people who donate to them. Charitable organizations are still required to pay state sales and use taxes, but do not pay taxes on profits. In order to be eligible for tax-exempt status, a nonprofit company’s net profits cannot benefit the private interests of the company, its employees, or its stakeholders. The nonprofit cannot be an “action organization,” meaning it may not attempt to influence legislation as a core activity, or participate in any campaign activity for or against political candidates. Different types of nonprofit organizations have specific criteria involved with determining tax-exempt status. Check out the IRS website for more information.

Focus On Your Mission, Not Your Books

Nonprofits require steadfast dedication to the mission of the organization. Adding nonprofit payroll management — with all the specific standards and laws that regulate it — to your list of duties, and you may find that you’re in over your head. Thankfully, outsourcing your nonprofit payroll can alleviate the headache of additional responsibility, save time and money, and reduce inefficiencies.
 
This article is reprinted from site http://www.paychex.com/articles/payroll-taxes/should-you-outsource-your-nonprofit-payroll#sthash.c3qkQz4M.dpuf
In our experience, business are using payroll outsourcing services most often for these important reasons:
1. Free Up Your Time
Payroll processing by hand is a time-consuming process. Outsourcing payroll can free up staff time to pursue more important value-added and revenue-generating activities. Inc. magazine recently identified the #1 task for small business to outsource is payroll, along with most accounting tasks.

 2. Reduce Costs
The direct costs of processing payroll can be greatly reduced by working with a payroll provider. Our research indicates that a small business with 10 employees will typically spend $2,600 per year in direct lab or costs associated with payroll.

3. Avoid IRS Penalties
According to the IRS, 40 percent of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments. Most national payroll services provide a tax guarantee, ensuring that customers will incur no penalties because the providers take responsibility for penalties when they do occur. In many instances, this cost-saving immediately justifies outsourcing payroll.

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4. Alleviate Pain
Manual payroll is a headache in the best case and a nightmare in the worst case. Business owners who outsource payroll eliminate a tiresome source of personal pain.

5. Offer Direct Deposit
Providing direct deposit is difficult if a company doesn't use an outside payroll service. Increasingly, small businesses recognize that employees want direct deposit. Not having to make a trip to the bank is an important convenience for them. More importantly for business owners, direct deposit eliminates time-consuming and error-prone paper handling and the need to reconcile individual payroll checks every month.

 6. Avoid Technology Headaches
A constant question for small business owners is whether they have the latest version of their payroll software and the most recent tax tables installed on their computer. Using the wrong tax tables can result in stiff penalties. Outsourcing payroll removes those headaches and keeps payroll running smoothly.

7. Leverage Outside Payroll Expertise
Most business owners and controllers don't have time to keep up with constantly changing regulations, withholding rates, and government forms. By outsourcing payroll, a small business can take advantage of expertise that was previously available only to big companies.
8. Avoid Payroll Knowledge Walking Out the Door
If your bookkeeper or controller gets a new job, they will walk out the door with their knowledge of the payroll process and how you do it. Using an outside service eliminates that business risk. 
This new is reprinted via site  http://www.surepayroll.com/product/payroll/articles/benefits-of-outsourcing-payroll.asp#ixzz3VDOVNIE3
Victims of dodgy financial advice from a former National Australia Bank (NAB) financial planner, say the compensation the bank is paying is not adequate.
Veronica Coulston, a single mother on a low income, became mired in debt after following the advice of Graeme Cowper, a NAB financial planner.
She invested the inheritance she had recently received on her father's death, and was advised to borrow $150,000 for further investment, on top of the large mortgage she already had.
"I found that my finances were being blown out and that I was getting into further debt using credit cards to try to get myself out of the situation," Ms Coulston told 7.30.
"When I did contact Graeme, his advice was to draw down more money, $20,000 at a time in six months down the track."
Ms Coulston said the ordeal eventually took a physical toll as well.
"I was just getting into more and more debt and it was just increasing and it was making me feel very ill in the sense that I was having a lot of panic attacks, anxiety attacks and I couldn't sleep," she said.
"All that plays out ... being at home and my daughter experiencing me going through really difficult times and seeing all the emotional stress that was put on me because of my financial situation."



Danielle Wilkie was also advised by Mr Cowper and said she suffered a similar experience.
She and her husband Jamie were trying to get ahead financially so they could pay for the education of their twin daughters.
"Thinking that you are banking with the NAB, aren't they one of the top five Australian banks in Australia? So, I thought we'd be safe," Ms Wilkie told 7.30.
Two years later they faced financial ruin.
They had to pull their daughters out of the private school they were attending and they almost lost their house.
It has taken a big toll.
"For years it was a struggle to know that we've done this to our girls, that we weren't going to give them the life we thought we would," she said.

Whistleblower draws parallels with past CBA scandal

Jeff Morris blew the whistle on bad financial advice being given by the Commonwealth Bank (CBA) in 2014 and also gave evidence recently to a Senate committee investigating financial planners about NAB's behaviour.
"In my opinion the NAB financial planning scandal is a carbon copy of the CBA financial planning scandal," Mr Morris told that Senate committee.

The only difference is that NAB succeeded in sitting on the volcano longer. The fraud, forged signatures and appalling advice given to clients is identical."
Mr Morris is a friend and previous work colleague of Ms Coulston, who alerted him to her plight when he was critical of the Commonwealth Bank last year. Since then, others like Ms Wilkie have also contacted him.
The financial planner who advised both women, Graeme Cowper, was sacked by NAB in 2010 but continued to give advice, most recently for the AMP company, IPAC.
AMP said Mr Cowper was placed on paid leave when the NAB documents naming him were leaked and said he would remain on leave while the cases were reviewed.
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"(Mr Cowper) was the blue-eyed boy up until the moment he was caught; he is now the so-called rogue planner," Mr Morris told 7.30.
"ASIC had, at a minimum, a breach report from NAB and they knew that 39 of his clients had been compensated and yet they say they did not bother to investigate for lack of resources. It is pitiful, frankly."

'It is the psychological trauma that is the worst'

Ms Coulston said the compensation offered to her by NAB did not go anywhere near covering her losses.
"Initially they offered the sum of $60,000," she told 7.30.
"That was the first offer they presented and then when their reply came back Jeff also pointed out numerous other things that they actually didn't pick up at all, that they were hoping that I would just not even address.
"Then they put forward another offer that came to the sum of $80,000 ... that's monetary side of things.
"It doesn't compensate for all the heartache and the pain of what actually happened and the impact that it had on myself and numerous family members. It was a very difficult time."
Ms Wilkie and her husband did complain when NAB offered a small compensation payment, but they did not feel strong enough to fight any more.
She said the bank acknowledged the harm the debt had caused her but made a derisory offer.
"Here is a token payout, never to speak of it again, and go away," she said was the tone of the letter.
"I just want what the money that we had to put into our mortgage back.
"I just want to be back to the day when I walked into their office - financially, emotionally.
"I don't think there would be any amount payable to fix the harm that [was] done in the last seven years, but if I could get back to where we were before we walked into the bank, that would be nice."
Mr Morris said most of the bank's victims were battlers.
"It's the psychological trauma that's the worst, it's the strain, the depression," he said.
"Living with this nightmare of being frightened, of not being able to pay your bills or your mortgage, it's terrible."

This news is reprinted from site http://www.abc.net.au/news/2015-03-18/dodgy-nab-financial-planning-victims-say-compensation-not-enough/6330590