Common employees for payroll tax

If your employees, through their employment with you, perform duties for other businesses, your business may be grouped with these other businesses for payroll tax purposes.

You are grouped if your employees:

  • perform duties for a business carried on by you and another person or persons
  • are employed solely or mainly to perform duties for another business
  • perform duties for other businesses due to an agreement you have with those businesses.

Examples

Example 1 - Employee works for a business carried on by you and another person or persons

Company A manufactures tyres, and together with Company B operates a car yard. An employee of Company A performs duties for the car yard as a whole. Company A and Company B are grouped.

Example 2 - Employee works solely or mainly for another business

Service Pty Ltd employs Sam to perform duties solely for another business, Receipt Pty Ltd, operating out of the same block of offices. Sam takes instruction from Receipt Pty Ltd and receives and distributes goods, answers phone calls and responds to general requests from Receipt Pty Ltd. In this case, Receipt Pty Ltd and Service Pty Ltd are grouped.

Example 3 - Employee works for another business due to an agreement

Purple Pty Ltd employs Jessica and Chloe. Purple Pty Ltd has an agreement that Jessica and Chloe will perform duties for Pink Pty Ltd, including producing and delivering retail stock from its factory to Pink Pty Ltd. Both businesses in this example are grouped.