Gig workers can be considered independent contractors or employees, or sometimes the platform operator is classed as an employment agent. It depends on the business structure and the workers’ employment relationship. Click the arrow to read the new ‘Gig economy businesses’ page.
If your annual payroll tax liability for NSW exceeds $20,000 you must pay payroll tax monthly. Learn how to use the different wage calculation methods and set up payments.
Make your monthly returns easier
Save time calculating and paying monthly payroll tax. If you paid less than $150,000 in payroll tax during the previous financial year you can use the estimate wages method to calculate your liability.
The due date for paying your monthly payroll tax is 7 days after the end of each month, or the next business day if the 7th day is on a weekend or public holiday. You must also lodge a ‘nil return’ by the due date.
The month of June is incorporated into the annual reconciliation and does not need to be paid by 7 July of each year.
If you do not pay your payroll tax by the due date, we will apply interest to the outstanding amount. Penalty tax may also be imposed. Read the interest and penalty tax page for more details.
The estimate wages method involves entering an estimate of taxable wages into Payroll Tax Online.
If your annual payroll tax liability for NSW is less than $150,000 you may use the estimate wages method or the actual wages method to calculate your monthly payments.
If your annual payroll tax liability for NSW is more than $150,000 you must use the actual wages method.
You may use the estimate wages method for a one-off calculation, or you can set this amount for future months.
How to calculate your liability
Existing customers
If you paid payroll tax previously, you could estimate the future monthly payments by adding 3% (estimated increase in wages) and dividing the tax paid by the number of days in the year and multiplying by 12.
Blue Pty Ltd began employing in Australia on 1 October 2022 and therefore only employed for 273 days during the 2022/23 financial year.
The total NSW payroll tax liability for the previous financial year was $25,000.00.
Calculation of estimate
Estimate tax
Total tax payable in previous financial year x 1.03) ÷ Total number of days employed in previous financial year
($25,000.00 x 1.03) ÷ 273 = $94.32
Daily estimate x (365 ÷ 12)
$94.32 x (365 ÷ 12) = $2,869.00
Monthly estimate for July – May
$2,869.00 per month
New customers
If you are a new payroll tax customer and did not have a payroll tax liability in NSW during the previous financial year, you can still estimate your future monthly tax liability based on three previous months of wages.
Yellow Pty Ltd started employing in NSW as of 1 July 2023.
Yellow Pty Ltd paid payroll tax of $6,000 in the current financial year for the months of July, August and September (a total of 92 days).
They have decided to use the estimate method for the remainder of the financial year.
Calculation of estimate
Estimate tax
Total tax paid in the current financial year ÷ Total number of days to which the paid payroll tax relates to.
$6,000.00 ÷ 92 = $65.22
Daily estimate x (366 ÷ 12)
$65.22 x (366 ÷ 12) = $1,989.21
Monthly estimate for October – May
$1,989.21 per month
How to pay
Using the estimate calculation method with our direct debit payment option will ensure we receive your monthly payment on time, avoiding any interest and penalty tax for late lodgement.
There are two steps to using the estimate wages method. Open the headings below to read more.
Go to the “Calculate a monthly return” page and select the “Estimate” button.
Set your estimated monthly payroll tax liability to be paid each month.
You can select the option to schedule the amount as a one-off payment, or schedule as a monthly payment for the rest of the year (see Step 2 below).
Select the “Save” button for payment options.
Confirmation that your estimate calculation has been saved for the remaining months of the financial year will appear in green on the same page.
If your wage levels change during the year, you can update the estimate amount you wish to pay at any time by clicking “Modify calculation” under the individual return period.
If you selected direct debit, you can pay now or schedule the next payment due date.
There is also the option to use BPAY or EFT manual monthly payments based on your estimated calculation. Read pay your payroll tax for more details on the payment options.
Direct debit for an individual month
Once you have saved your estimate monthly calculation:
Select “Pay Online” to schedule a payment for that return only.
Under “Pay now?” select one of the following options:
“Yes” to schedule the payment as a once-off on date of lodgement, or
“No” and choose a future date for payment.
Select the “Pay” button to schedule the current monthly payment.
You will receive a receipt number once lodgement has been submitted correctly.
Direct debit for the rest of the year
Once you have saved your estimate monthly calculation:
Select “Pay Online” to schedule a payment for the remaining months.
Change “No” to “Pay now?”.
Choose a scheduled payment date for the first return.
Select “Yes” to “Schedule future payments for the remaining months of the financial year?”.
Select the “Pay” button to schedule the current and/or future payments.
Once lodgement has been submitted correctly, you will receive direct debit details on the same page for all future scheduled payments.
If you select "Other Payment Options" it will not set up an automatic payment. It will provide EFT and BPAY reference numbers.
Go to the “Return History Summary” page in Payroll Tax Online to view the lodged tax payable for each month and confirm the direct debit and dates.
Actual wages method
The actual wages method involves entering all liable wages into Payroll Tax Online.
If your annual payroll tax liability for NSW is more than $150,000 you must use the actual wages method to calculate your monthly payments.
If your annual payroll tax liability for NSW is less than $150,000 you may use the actual wages method or the estimate wages method.
How to calculate your liability
You may use the Monthly Payroll Tax Calculator in Payroll Tax Online to help you work out your actual monthly tax liability.
You will need to declare the following. Open the headings to read more.
If a business employs in another state or territory, you will need to declare the gross liable interstate wages for payroll tax for any other states or territories where wages are paid.
Go to the “Calculate a monthly return” page and select the “Actual” button.
Enter all liable wages.
Select “Calculate and save”.
After saving return details, if you select the “Pay Online” method and have bank details already saved online, it will set up the direct debit (automatic payment) for that return only. You can pay immediately or schedule the payment on a future date prior to the due date.
If you are not registered to pay via direct debit, you can select “Other Payment Options” which will not set up an automatic payment. This method provides EFT and BPAY reference numbers for you to make a manual payment.