Once you reach each state's payroll tax threshold, you must begin reporting and paying payroll tax on a monthly basis.
Payroll Tax is administered on a state-by-state level. A full list of various payroll tax thresholds and rates is found here.
You must keep track of your wages paid in the state where you have the most employees, and if your wages exceed that state's payroll threshold, you must register for that state's payroll tax (and likely others - see below).
Once registered (in each state), you must lodge each month using the online system of that state to declare total wages and pay any applicable payroll tax (which is based on state-by-state payroll tax rates above state-based wages thresholds). An annual declaration (per state) is filed at the end of the fiscal year, and any net payable / refund relative to the annual wage threshold is paid/refunded.
Typical taxable wages include:
- Direct salaries
- Fees for directors
- Superannuation
- Bonuses
- Allowances
- Fringe benefits
- Contractors who work primarily for you
- Any shares or options that have been granted
Most states require you to lodge and report when you meet national salary thresholds, even if there is no payroll tax payable (based on that state's thresholds). In practice, this means that once you reach the threshold in any one state (typically where you have the most employees), you will most likely be required to register in all states as / when you employ in other states.
Payroll Tax lodgement is usually due on the 7th of every month.
Because of the different thresholds per state, it is theoretically possible to be below your primary state's payroll tax payable while still being required to register and report in another state's payroll tax regime.
Reach out to your payroll specialist if you require more information and need further assistance here.