How to pay payroll tax with a credit card and earn points

As a medium to large business owner or operator in Australia, you’re likely familiar with payroll tax – an additional expense paid to state and territory governments once your business reaches a certain threshold of monthly wages. While these payments can be substantial, remember they’re also a sign of your business’s growth and success.

But what if you could turn these necessary payments into valuable rewards?

With pay.com.au, you can do just that – earn credit card rewards points on your payroll tax payments and potentially transform your business expenses into luxurious travel experiences with programmes like Qantas Business Rewards, Velocity Points, or even KrisFlyer miles.

Why use pay.com.au to pay for payroll tax with a credit card?

When you pay payroll tax directly to state and territory government revenue offices with your credit card, you often get minimal rewards or none at all.

Most credit card providers cap points on government payments, sometimes offering you as little as half the standard points per dollar spent. This significant reduction can result in substantial lost value for you over time.

Pay.com.au addresses this issue by enabling you to earn full points at your card’s standard rate for payroll tax payments.

This can potentially double your rewards compared to direct payments. As banks increasingly reduce or eliminate rewards for government transactions, pay.com.au offers you a solution to maintain these valuable points on your payroll tax expenses.

What are the Australian payroll tax rates?

Here’s a handy table which shows payroll tax rates, current as of Sep 2024:

Benefits of paying your payroll tax with a credit card

• Earn rewards points: Use your points for business class flights, luxury hotel stays, or other valuable rewards that can benefit your business.
• Cash flow management: Many business credit cards offer you up to 55 days interest-free on purchases, which can help you manage temporary cash flow issues.
• Flexibility: Using a credit card for your payroll tax payments gives you more time to pay off the bill, potentially allowing you to prioritise other business expenses.

How many points can you earn by paying payroll tax with a credit card?

If you’re looking to optimise your credit card rewards, paying your payroll tax through pay.com.au offers you an interesting opportunity. This method can potentially yield significantly more points compared to direct government payments, which often come with capped or reduced earning rates.

Here’s how it works for you: pay.com.au allows you to earn points at your card’s standard rate when paying payroll tax. With the right card, this could mean you earn up to 1.25 points per dollar spent. Let’s break it down with an example:

Imagine you have a $33,200 payroll tax bill and a credit card that earns you 1.25 points per dollar. Paying through pay.com.au could net you 41,500 points. In contrast, paying the same amount directly to the government might only earn you 16,600 points at a reduced rate of 0.5 points per dollar.

That’s a difference of 24,900 points for you – not an insignificant amount.

To put this into perspective, 55,200 points could get you a return business class flight between Adelaide and Sydney flying Qantas. For businesses with higher payroll tax bills, the points could quickly add up to multiple business-class flights, upgrades and more.

However, it’s important to consider the full picture. pay.com.au charges fees for their service, which you’ll need to factor into your calculations. It’s worth using a points calculator to determine if the potential rewards outweigh the costs for your specific situation.

Ultimately, this strategy can be useful if you’re looking to maximise your rewards on necessary payroll tax payments. As with any financial decision, it’s about weighing the costs and benefits to see if it aligns with your goals and circumstances.

How you can maximise your business rewards

To get the most out of your business payments, consider these strategies:

1. Choose a high-earning rewards card: Look for cards that offer you the best points-per-dollar ratio.
   Some cards even allow you to transfer AMEX points to Qantas Points.
2. Opt for a monthly pay.com.au subscription: These regular and premium subscriptions offer lower transaction fees and inclusions such as complimentary PayTravel inclusions.
3. Opt-in to earn PayRewards on bank transfers: With the pay.com.au platform, you can earn rewards on all payments made via your linked bank account.
4. Time your payments: If possible, schedule your larger payments when credit card bonus point offers are available. Some airlines even allow you to buy points or top-up points to reach your travel goals faster.
5. Explore point hacks: Australia has a vibrant community of points enthusiasts. Researching point hacks can help you maximise the value of your rewards.
6. Consider different reward programs: Whether you prefer Qantas Business Rewards, KrisFlyer miles, or something else, choose the program that best aligns with your travel goals.

Beyond payroll tax payments

pay.com.au isn’t just for your payroll tax bills. You can also use the platform to earn rewards on:

• Payments to your contractors, suppliers and consultants
• Your equipment and capital goods purchases
• Your rent payments
• Your employee superannuation contributions
• Your ATO payments (including BAS and company tax)
• And much more

This means you can earn rewards on various business expenses, maximising your points-earning potential. It’s a great way for you to boost your business rewards across all your payments.

How our fees stack up

pay.com.au offers you some of the most competitive fees in the market for processing credit card payments for payroll tax:

• Mastercard: 1% + GST
• VISA: 1.20% + GST
• American Express: 2.10% + GST

Plus there’s an option to add PayRewards Points to every transaction:

• Earn 1 PayRewards Point per $1 with a 1.0% ex GST fee
• Or 2 Points per $1 with a 1.8% ex GST fee.

These rates can be further reduced if you subscribe to their Regular or Premium packages. Compared to other B2B payment options, pay.com.au often emerges as a superior rewards and payments ecosystem for your business.

Is it worth it for your business?

When deciding whether to use pay.com.au for your payroll tax payments, consider:

• The value of the rewards you’ll earn
• The fees you’ll pay
• The potential cash flow benefits for your business

For many businesses, especially those with high turnover and substantial payroll tax bills, the rewards earned can far outweigh the fees, making it a smart financial decision for you.

Getting started

It’s easy for you to get going with making your payroll tax payments through pay.com.au.

Sign up, enter your ABN and a few general pieces of information; add your credit card to the digital wallet; add your payee information and you’re ready to go.

By using pay.com.au, you can turn your necessary payroll tax payments into a rewarding experience for your business. Start maximising your rewards today!

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