Introduction
1. This information sheet (TPB(I)) has been prepared by the Tax Practitioners Board (TPB) to assist payroll service providers to understand the operation of the tax agent services regime and their responsibilities in relation to registration.
2. For the purposes of this TPB(I), the term ‘payroll service provider’ takes a broad interpretation and includes individuals or entities that process payroll, or perform payroll related functions, for clients in order to satisfy their clients’ relevant tax related statutory requirements (see paragraphs 17 and 18 for more information regarding examples of services that may be provided by payroll services providers, and whether the payroll service provider needs to register with the TPB). The performance of payroll related functions may include the reporting of a ‘pay event’1 or an ‘update event’2 through the use of Single Touch Payroll (STP)3 enabled software.
3. Ultimately, whether a payroll service provider needs to register with the TPB is a question of fact. This means that each situation will need to be considered on a case-by-case basis having regard to the facts and circumstances of the payroll service provider.
4. In this TPB(I), you will find the following information:
• background about the tax agent services regime (paragraphs 5 to 16)
• examples of circumstances where a payroll service provider does not need to register as a tax agent or BAS agent (paragraph 17)
• examples of circumstances where a payroll service provider must register as a tax agent or BAS agent (paragraph 18)
• options available to payroll service providers who need to register (paragraph 20), including information about the different eligibility pathways for registration.
Background
Source : Tax Practitioners Board
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