Payroll tax on termination and other payments

If you make payments to your employees in addition to their regular remuneration, they may be taxable in Queensland.

Read the following list of payments to work out if you must include them in your payroll tax return.

Termination payments

The table below lists the different types of termination payment and if they are taxable.

Find out more about termination payments.

TypeLiability

Payments in lieu of notice

Taxable if the employee must include it for income tax purposes

Ex gratia payments or 'golden handshakes'

Taxable if the employee must include it for income tax purposes

Genuine redundancy payments

Not taxable if exempt from income tax

Early retirement scheme payments

Not taxable if exempt from income tax

Unused annual leave

Taxable

Unused long service leave

Taxable

Commissions, dividends, GST, superannuation, and shares and options

TypeLiability

Bonuses

Taxable

Commissions

Taxable if this is payable to an employee, including a:

  • time-payment canvasser or collector
  • insurance canvasser or collector

You must include commissions in your return for the period in which the sale is settled or when the commission is paid, whichever happens first

Dividends (company share)

Not taxable

GST

Not taxable

Superannuation contributions

Taxable whether for an employee or non-employee director

Superannuation guarantee levy

Taxable

Shares and options

Taxable