WA Employers Warned About Payroll Contractor Tax “Scam”

Employers have been urged to check if payroll taxes are being paid to the State Government if they are using payroll processing contractors, after revelations taxes have not been passed on by some contractors.

Recent audits have indicated that a number of payroll processors are receiving payroll tax from employers but they are not handing the payments to the Commission of State Revenue.

The WA Government said businesses are advised to ask payroll processors for proof payroll tax has been paid to the government and contact the Department of Finance’s Office of State Revenue to confirm the relevant payroll tax has been paid.

“I urge all employers using a contracted payroll processor to confirm their relevant payroll tax is being paid to the Commissioner of State Revenue,” Finance Minister Ben Wyatt said.

“Similarly, employers considering using an external party to pay employee wages, benefits, PAYG, superannuation and payroll tax should conduct appropriate due diligence before entering such an agreement.”

He said the safeguards are being created to bring attention of the issue to the public.

“The Western Australian Government is collaborating with State Revenue offices around the country to share intelligence and ensure a coordinated approach is taken to raise awareness about this scam,” Mr Wyatt said.

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