Payroll tax annual return tutorial

This guide will help you lodge a payroll tax annual return in OSRconnect.

The last few days before the due date can be very busy and if you have difficulties and need to contact us, you may experience delays. For this reason, we recommend you lodge your return as early as possible.

Before you begin, ensure that:

  • your contact details are correct. Learn how to update contact details in OSRconnect
  • your employer status is correct. If your employer status has changed since your last return, you must lodge a final return first
  • you have your taxable wages ready
    • categorise your Queensland taxable wages (e.g. allowances, contractors)
    • identify your non-taxable wages (e.g. exemptions)
    • calculate your interstate wages and group members' wages (if applicable)
  • you have submitted all your periodic returns for the financial year.

You can also

On the Lodgement Obligations tab:

  1. Locate the annual return in the Period column.
  2. Select Create to display the return.

Note: If you see a transaction number in the Transaction No. column, the return has been saved in draft. You can click on this number to open the return.

OSRconnect lodgement obligations

Your client and period details will appear automatically on this screen.

  1. You can enter your own reference (optional).
  2. Select Save at any time to save your data.
    This will generate the transaction number (which will also become your payment reference number).
  3. Select Exit to return to the Lodgement Obligations tab.
  4. Click Next to continue.

Identification annual return screen

Make sure that:

  • the start date for this return is 1 July unless you have lodged a final return during the financial year, or you started to employ and became liable after 1 July
  • your Employer Status is displayed correctly. If the status shown is incorrect and changed before 1 July of the year of the annual return, do not proceed with your annual return. Complete a final return instead. Choose Payroll Tax Final from the Create return/transaction drop-down list in the Lodgement Obligations tab and click Create
  • you proceed with the annual return and record the change of status at the Status Change stage if it happens on 1 July for the new financial year.

Queensland non-taxable wages

  1. Enter your Queensland non-taxable wages for the period of the return for each of the 3 categories.
  2. Enter 0 for any nil amounts. Do not leave any fields blank.
  3. Include non-taxable wages such as workers’ compensation payments, exempt allowances and leave (e.g. maternity leave) in Other non-taxable wages.
  4. Click Forward to continue.

Queensland taxable wages

  1. Enter your Queensland taxable wages for the period of the return for each of the 10 categories.

Do not include non-taxable wages in this section. Read more about taxable wages.

  1. Enter 0 for any nil amounts. Do not leave any fields blank.
  2. Click Forward to continue.

Note: Gross salary and wages must be the gross figure for Queensland wages only (before any deductions have been applied). Enter interstate and group member wages later in the return.

Interstate wages

  1. Answer the question: Did you pay wages that are taxable in other states or territories of Australia?
    If you answer Yes, enter your Total interstate wages.
  2. Enter 0 if the interstate wages are nil. Do not leave any fields blank.
  3. Click Forward to continue.

Note: Include only your interstate wages. Do not include any wages for group members (if applicable).

Group wages

This section will only appear if you are a designated group employers (DGEs). If you are a group member or non-grouped, go straight to Payroll tax calculation.

  1. Enter the Total Queensland taxable wages and Total interstate taxable wages for the period of the return for all group members, including your DGE figures.
  2. Enter 0 for any nil amounts. Do not leave any fields blank.
  3. Click Forward to continue.

Group wages screen

Payroll tax calculation

  1. Click Calculate to display the Payroll Tax Calculation for the return.
    • Rebate is based on apprentice and trainee wages declared under non-taxable wages.
    • Less total periodic amounts is the combined liability of your periodic returns (within the annual return period)—it does not include interest or penalty tax.

If you are a group member or non-grouped, go to the Liabilities stage.

Calculation annual return screen

Allocation of excess deduction

This section will only appear if you are a DGE and have an excess deduction. If you don't have an excess deduction, or you are a group member or non-grouped, go straight to Liabilities.

  • If your annual deduction entitlement is greater than your wages, you can nominate other members of the group to share the excess. Nominate the group members in order of preference.
  • If you do not nominate anyone, we will decide which members of the group receive this amount.
  1. To nominate a group member, enter the Group Member Name and Client Number.
    Click Add or Delete to add or remove group members.
  2. Click Next to continue.

Excess deduction annual return screen

OSRconnect will display the amount of payroll tax payable, with interest (if applicable).

  1. Select Save - the transaction number will be displayed in a pop-up box that you can then close by clicking the X button.
  2. Click Next to continue.

Liabillities annual return screen

Ensure you answer all questions in this section.

  1. Answer Yes to the applicable questions to advise of any changes of status for your next lodgement period.
  2. Click Print preview to view and/or print a draft copy of the return details. Click the X button to return to the Status change screen.
  3. Click Next to continue.

Note: Saving or viewing the summary page at this point does not mean you have submitted the return.

Status change annual return screen

Enter your personal details here. The fields marked with an asterisk (*) are mandatory.

  1. As an authorised lodger, you must declare that the information provided is true and correct.
  2. To print a summary of the information entered in the return to this point, click Save and then Print preview.
  3. Select Submit to lodge your annual return.

Note: Saving and viewing the summary page at this point does not mean you have submitted the return.

A Submit Now? pop-up screen will appear.

  1. Select Submit to confirm that you are ready to lodge the return.

A Confirmation page will display when your return has been submitted successfully. It will show a breakdown of the primary payroll tax liability, any unpaid tax interest (if applicable), due date, unpaid tax interest start date and payment method options.

  1. Select Print to print a copy of your confirmation.

Note: If paying by cheque, you need to send us this confirmation page with your cheque.

If you have recorded your bank details in OSRconnect for direct debit, you will be given a Pay Now option. Otherwise, click the Exit button at the bottom of the screen to close the confirmation, and use one of our other payment options.

Payroll tax annual return confirmation