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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.
Also consider...
- Read the public ruling on termination payments (PTA004).
- Learn more about calculating payroll tax.
- Read about taxable wages for payroll tax.
- Last reviewed: 3 Apr 2020
- Last updated: 19 Jan 2018
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Contact
Office of State Revenue
- Call 1300 300 734 (Australia) or
+61 7 3179 2500 (overseas) - Send an email using our online enquiry form.