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Organisations can manage their payroll in a number of ways.

If you use a Payroll Service, then that Service will provide you with all the details you need to complete your Business Activity Statement, as well as your other reporting requirements.

If you are managing your own payroll, file your wages book here. GST is not payable on wages.

As an employer you are required to deduct the personal tax your employees pay on their income. From 1 July 2000, this deduction becomes part of the Pay As You Go System (PAYG) For further details, go here.

It is important to remember that you do not have to pay GST on wages. When you record wages you paid, say in the Cash Payments book, do not include a component for GST as you are not entitled to claim this as an input tax credit.