Third party payments

Payroll tax

Wages paid to an employee or director for services provided to an employer are liable for payroll tax if they are paid:

  • to a person other than the employee or director

  • by a person other than the employer

  • by a person other than the employer to a person other than the employee or director.

If a director provides services to a corporation, all payments relating to that service are wages for the corporation even if the payments are made to another company, a superannuation fund or other entity.

Last updated: 16 April 2015