You De‑Registered: Your Payroll Tax Exposure May Not Have Followed
Most businesses assume payroll tax follows the office. If there is no physical presence in a state, there is no obligation there. That view made sense when most employees worked where the business was located. It is harder to justify now.
The Nexus Your Workforce Created Without You Payroll tax does not simply follow the office. It starts with where services are performed, but where that is not confined to one state, a set of nexus rules determines where the wages are taxed. Those rules take into account factors such as where the employee lives,
Around 36% of employed people in Australia now usually work from home, which is still well above pre‑pandemic levels. For employers with people across multiple states and territories, that is no longer just a workforce statistic. It is a tax position that needs to be understood. In practice, it is one that often has not been revisited.
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ISSUE 25 GLOBAL PAYROLL MAGAZINE
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