How to pay payroll tax with a credit card and earn points
For medium to large businesses, payroll tax is an additional hassle and expense which needs to be paid to state and territory governments.
Payroll tax kicks in once a business reaches a certain threshold of monthly wages to employees in a given state or territory.
Payroll tax bills can quickly add up for larger businesses, with rates as high as 6.85 percent of employee wages.
But there is a way you can turn payroll tax bills into business class flights to help make the painful but necessary expenditure a whole lot sweeter.
With pay.com.au, it is easy to earn credit card rewards points from payroll tax bills – which will have you jet-setting the world in no time.
You could be getting your Fiji holiday started the right way with lounge access and business class flights before being greeted to a tropical paradise by the magic word ‘Bula’.
Banks and other credit card providers are increasingly moving away from awarding rewards points for payments made directly to government bodies.
However, you can still earn credit card points by paying your payroll tax bills through pay.com.au – so that you can continue to rake in the rewards.
With low fees and a simple and easy-to-use interface, pay.com.au can help you do business better.
That next getaway could be a lot closer than you think.
Why use pay.com.au to pay for payroll tax with a credit card?
You may be able to pay your payroll tax off directly to state and territory government revenue offices with a credit card, but you might earn no points or points at a significantly reduced rate. For example, the American Express Business Explorer card normally earns 2 Membership Rewards points per dollar on regular spend.
However, it only earns 1 Membership Rewards point per $1 of government spend.
On a payroll tax bill of just $10,000 that means you would earn 5000 more Membership Rewards points by using pay.com.au to pay the bill.
That is – you guessed it – double the points, for just a fraction more in fees.
What are the Australian payroll tax rates?
Here’s a handy table which shows payroll tax rates, current as of March 2021:
How can I pay payroll taxes with a credit card?
Most businesses have traditionally got no kickback for payroll tax payments. However, with pay.com.au you can earn maximum points on all your payments. Payroll tax is self-assessed and paid based on wagers an employer pays to its employees. When those wages exceed a certain threshold, the tax kicks in. Returns are lodged and payments need to be made at an agreed frequency (monthly, quarterly or annually) to respective state and territory revenue offices. Regardless of what state you have employees in, you can use a high points-earning credit card and a pay.com.au account to earn rewards points on all your payroll tax payments.
Our end-to-end encrypted systems are PCI Data Security Standard compliant and we make it easy to pay payroll tax with a rewards credit card. You don’t need to do much more than select which credit card you want to use to earn points from the transaction.
We accept Mastercard, VISA and American Express credit cards and charge cards.
Why pay your payroll tax bill with a credit card?
Most businesses are seeking rewards points when they use pay.com.au to make credit card payments for payroll tax.
However, there are also other benefits of using a credit card to pay your payroll tax.
Many business credit cards offer up to 55 days interest free on purchases, which can help make all the difference when temporary cash flow issues arise.
That extra time to pay off your payroll tax bills could also save a business interest or fees by giving it the ability to pay down other loans.
How many points can you earn by paying your payroll tax bills with a credit card?
Savvy businesses with the right credit card can earn up to 1.25 points per dollar paid on payroll tax via pay.com.au
At that rate, just $33,200 of payroll tax payments would be enough to land you a one-way business class flight between Brisbane and Fiji flying Fiji Airways.
Businesses with high turnovers and high payroll tax bills could quickly rack up hundreds of thousands of credit card rewards points.
You may never have to fly in economy ever again.
What else can you use pay.com.au to pay for?
We don’t just allow businesses to make credit card payments for payroll tax bills.
We can also process payments to contractors, suppliers and consultants or help you pay for equipment and capital goods.
Businesses can even use our platform to earn credit card rewards points for paying rent or employee superannuation.
The points-earning possibilities are endless.
What is the fee for paying taxes with a credit card?
We offer the lowest fees on the market for processing credit card payments for payroll tax bills.
And signing up to one of our subscription packages – which come with a range of other benefits – can bring those fees down even lower.
On our free base package we charge a 0.85% fee plus GST for Mastercard transactions (0.62% after tax), 1.05% plus GST for VISA (0.76% after tax) and 2.10% plus GST for American Express (1.52% after tax).
If our low base rates are not enough, we also offer two cost-effective subscription services – Regular and Premium – which not only come with lower transaction rates but also give pay.com.au member’s access to personalised Points Advice and a Booking Concierge service.
From helping you earn maximum rewards points to finding elusive Business and First Class seats and jetting off wherever your heart desires, pay.com.au can assist along every step of the way to your well-deserved holiday.
How do I sign up?
Just head to pay.com.au and follow the prompts to sign your business up.
You too could soon be joining our growing number of very happy customers flying at the pointy end of the plane.