Payroll tax on fees and payments to directors

As a company, you are liable for payroll tax on wages paid or payable to your company directors.

A company director includes a member of the governing body of your company.

Directors wages include:

  • superannuation contributions
  • shares or options
  • employment termination payments
  • directors fees
  • any other amount paid or payable by a company as remuneration to a working or non-working director of that company.

Professional partnerships

Partners in a professional practice may be appointed as directors of a client company or a public company. Directors fees paid to these partners must also be included by the client company or public company as wages, even if the:

  • partnership (of which the director is a partner) has a partnership agreement that requires any fees received by partners as directors of client companies or public companies to be paid to the partnership
  • directors fees are paid to the partnership of which the director is a partner, rather than to the director or partner.

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