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.
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.
- Last reviewed: 22 Feb 2021
- Last updated: 2 Dec 2021