Sort payroll tax with a credit card and reap rewards
By RewardPay
3 min read
Sort payroll tax with a credit card and reap rewards
What’s the annual payroll tax commitment for your business? Probably it’s a decent whack of money. Now think about how many credit card reward points you could earn with that amount. And then consider what those reward points could buy. The idea of sorting payroll tax with a credit card and gathering points isn’t new, […]
What’s the annual payroll tax commitment for your business? Probably it’s a decent whack of money. Now think about how many credit card reward points you could earn with that amount. And then consider what those reward points could buy.
The idea of sorting payroll tax with a credit card and gathering points isn’t new, however some credit card providers are moving away from awarding rewards points for tax payments. But now there’s a work-around to solve that problem – RewardPay’s payment portal.
An ingenious way to help your business
Accruing credit card rewards points via the RewardPay portal is a legitimate way to optimise your American Express points. It works for any kind of business expense, plus it’s a strategy you can apply to tax payments – ATO, GST and payroll.
The points you gather can be exchanged for air travel, hotels and an extensive choice of versatile gift cards. These rewards are useful as employee incentives, gifts for clients and suppliers, or an amazing annual holiday for you and your family.
It’s as simple as one, two, three
To make it possible to get reward points for any type of business payment, RewardPay has built a secure payment portal that accepts American Express Cards. So you pay us with Amex, then we make payments on your behalf using either electronic funds transfer (EFT) or BPAY. The final part of the transaction is points for you.
Here’s how it works for payroll tax:
This system can also be used for salary and wages payments, ATO and GST payments, and rent payments. It can even be used for advertising spend. And with RewardPay, you secure the best points-earning rate – no measly half-points for you.
From a data safety point of view, you’re covered. Our systems prioritise security with comprehensive end-to-end encryption and unwavering adherence to PCI Data Security Standards.
Improved cash flow with up to 50 days interest-free
Points aside, using RewardPay to pay your payroll tax by credit card helps with cash flow management. American Express credit card transactions come with up to 50 days of interest-free credit, which is very handy during tight times and seasonal slowdown. This interest-free period can also help you to seize a good deal on new equipment without visiting the bank or paying interest on an overdraft.
“The biggest reason why I joined RewardPay was because it gave me the flexibility of maybe another 50 some days of cash flow without having to apply for a loan to the bank.” Luciano Schettini, Pastabilities.
Up to 50 days interest-free credit to help your cash flow
By paying media bills and other business expenses through RewardPay, you’ll enjoy more than 50 days of interest-free flexibility. This extra bit of financial flexibility is handy in lean times and seasonal slow-downs.
“When Reward Pay showed up as an option, I looked into and realised I can pay any of my suppliers – even the suppliers that don’t accept Amex. It works for me in terms of helping my cash flow,” Richard Romanowski, Planet Ark Power.
In terms of value, how do the numbers stack up?
For a set cost per transaction, RewardPay empowers you to maximise Amex points earning on payroll tax, other taxes and general business expenses.
Cost-to-value explained:
There’s no set up fee to join RewardPay. After signing up, you get access to an intuitive dashboard that makes it easy to add payees and start making payments.
For each payment up to $20,000, we charge a 2.15% + GST fee. This becomes just 1.61%, after deducting tax and GST on the fee as a business expense (we recommend you run this past your accountant).
If your total monthly business expenses add up to $20,000 (payroll, payroll tax, rent, other tax payments and general expenses), you could earn around 400,000 Amex points each year. If your expenses add up to more, your points accumulate even faster.
Using the $20,000 example and an effective rate of 1.61% for each payment made through RewardPay, your fees would add up to $3,864 a year. While this certainly isn’t petty cash, the Amex points earned have a flight redemption value of about $8,000, even after allowing for usual surcharges, fees and taxes that come with travel bookings. How’s that for value!
Why did we choose to partner with American Express?
We chose American Express as our credit card partner because the benefits are bigger for you. In Australia, Amex is known for outstanding points earning rates. By signing up for RewardPay, you get these great rates even when your payee doesn’t usually accept credit cards.
Another reason we prefer American Express is the choice of cards they offer. There are five options for personal cards and another five for business.
Here are the points-earning rates for American Express business cards in Australia:
American Express® Platinum Business Card – up to 2.25 points per $1 spent.
American Express ® Qantas Business Rewards Card – up to 2 Qantas points per $1 spent.
American Express® Business Explorer® Card – up to 2 points per $1 spent.
American Express® Velocity Business Card – up to 2 Velocity (Virgin Australia) points per $1 spent.
American Express® Gold Business Card – up to 1.5 points per $1 spent.
Redeem your points to reward yourself or others
The Amex reward points you earn by using RewardPay for payroll tax and other business expenses can be redeemed for anything offered through your American Express rewards program. Typically, you’ll redeem your points for air travel, accommodation, car rental and gift cards. You can decide who gets the rewards – employees, clients, suppliers or yourself.
Signup and give RewardPay a go
It costs nothing to register for RewardPay; charges only apply when you put transactions through our portal. Also, there’s no obligation to keep using our service if you don’t feel it delivers value. Why not get on board and have a go, to see how the points mount up? Watch a video and see our pricing.
When you lodge your BAS (business activity statement) and there’s GST to pay, RewardPay makes sure you’re rewarded for every dollar that goes to the Australian Taxation Office. It’s not a hack or a loophole. It’s a legitimate and transparent process that ensures you get American Express membership rewards points for GST, PAYG withholding tax, […]
Whether you lodge business activity statements (BAS) monthly or quarterly, now there’s a way to be rewarded for every dollar you pay to the Australian Tax Office. By signing up with RewardPay, you can earn maximum American Express Membership Rewards points for GST, PAYG withholding tax, PAYG instalments and other regular taxes. While paying BAS […]
Paying tax is a fact of business life. As Benjamin Franklin once said: “Nothing can be said to be certain, except death and taxes.” But now there’s an upside to ATO payments – the chance to earn American Express membership rewards points that can be redeemed for flights, hotels, digital gadgets, books, wine and whatever […]
Signing up is free, takes around 5 minutes, and there are no setup fees or ongoing obligations. Click here to register. You will need your ABN, email address, and mobile number. When creating your password, make sure it is unique to RewardPay and stored somewhere safe. Once registered, check your email to verify your email address, then log in and complete a one-time identity verification. Once verified, your account is ready to start making payments and earning rewards.
RewardPay offers three subscription tiers. The Free tier has no platform fee and you only pay a processing fee per transaction. The Silver tier ($79/month) and Gold tier ($159/month) offer progressively lower Amex transaction rates, making them well suited to higher volume businesses. Visa, Mastercard and Bank payment fees are the same across all tiers. All platform fees are billed 3 months in advance and processing fees are a deductible business expense. See our full pricing breakdown here.
RewardPay supports payments to any Australian business with an active ABN – including suppliers, the ATO, superannuation clearing houses, rent, contractors, marketing, utilities, equipment and accounting. Payroll payments are also supported via Visa, Mastercard or Pay-by-Bank. Some restrictions apply – see the RewardPay Terms & Conditions for details.
Still have questions? Chat with us.