What is payroll tax?
Payroll tax is a state tax calculated based on an employer or group’s total amount of wages paid or payable. Wages paid include director, management and employee salaries, contractor payments and superannuation payments. In addition, employers must factor in fringe benefits, bonuses, commissions and termination payments.
Not all employers need to pay payroll tax — only those that exceed the payroll tax threshold.
Payroll tax: how to calculate it
Payroll tax in New South Wales is calculated at a rate of 5.45% on all wages paid. It only applies once an employer or group exceeds the payroll tax threshold. The state government has a payroll tax calculator on the Revenue New South Wales website.