Employer types


An employer is any person, including a body or association (incorporated or unincorporated) or partnership, who pays or is liable to pay wages which are subject to payroll tax in any state or territory of Australia.

A distinction is made between the following employer types since the information required for each, and the calculation of their payroll tax liability, is different in each case.

Non-group employer

Is an employer who is not grouped with any other employer or business. This employer type is entitled to claim a deduction. Non-group employers pay tax based on their Victorian taxable wages less their allowable deduction.

Ordinary member of a group

Is an employer who is a member of a group with other employers or businesses, but is not the member nominated to claim a deduction on behalf of the group. Ordinary members of a group are required to complete their own separate Annual Reconciliation return and pay tax based on their taxable Victorian wages.

Designated group employer

An employer who is a member of a group with other employers and who is nominated to claim a deduction on behalf of the entire group. Designated group employers pay tax based on their taxable Victorian wages less the group's allowable deduction. The deduction is determined by the designated group employer aggregating the wages paid by all members in the group.

Designated group employer of a scheduled group

A scheduled group is a group where the designated group employer is responsible for the declaration of wages and payment of tax on behalf of all the members included on the schedule. In certain cases, the overall group relationship may include members shown on the schedule as well as other related members on individual returns. Ordinary members included on the schedule do not lodge monthly returns.

The designated group employer pays payroll tax for all members on the schedule. However, members in the group who are not on the schedule lodge individual monthly returns and pay payroll tax based on these returns.

For the Annual Reconciliation, the designated group employer must ensure all wages and payroll tax paid by those members on the schedule, as well as all other related members of the group, are aggregated and included in their Annual Reconciliation.


If the SRO record of your employer type is incorrect, select the correct type in the Review Details screen. Also enter explanatory comments in the Additional Information box at the bottom of the screen, including the date your status changed and if you joined a group, the group ID (if applicable) and the names and ABNs of the entities you should be grouped with.

If your status changed during the financial year, you may need to complete multiple Annual Reconciliations at the end of the year. Change of Status help topic.


If you need further information on this topic, please contact our payroll tax enquiry service on 13 21 61.