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Taxes, duties, levies and royalties
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In this section
  1. Register for payroll tax
  2. Lodge your return
  3. Pay your payroll tax
  4. Rates and thresholds
  5. Wages
  6. Contractors
  7. Grouping
  8. Rebates and exemptions
  9. Your business
  10. Your industry
  11. Tax agents and advisors
  12. Help getting it right

Lodge your return

The due date for the December 2019 payment has been extended to Tuesday 14 January 2020.

Monthly calculator

Our online calculator helps you to work out your actual monthly tax liability or provides the option to enter an estimate tax liability for the months of July to May.

If you have an annual tax payable amount less than $150,000 for the previous financial year, you can now use the estimate calculation method to estimate your liability.

When you have determined your monthly tax payable, make the payment by the due date or let us know if it’s a nil liability.

Your monthly payment or ‘nil return’ is due seven days after the end of each month, or the next business day if the seventh day is on a weekend or public holiday.

You can login to the calculator using your client ID and correspondence ID (from your most recent correspondence from us) – your correspondence ID is only valid for 12 months.

Use the calculator now

Actual wage calculation method

To use the actual wage calculation method, you'll need:

Your NSW wages

You will need:

  • salaries and wages
  • fringe benefits
  • employer superannuation contributions
  • termination payments
  • contractor payments
  • allowances
  • bonuses and commissions
  • directors’ fees
  • shares and options
  • apprentice and trainee wages.

For more information, read the checklist of liable and exempt items.

Your total interstate wages

Total interstate wages comprise all those wage components that are liable for payroll tax in the state or territory where the interstate wages are paid.

Grouping information

If you’re a member of a group and are claiming the threshold, or you are the nominated group single lodger, you also need:

  • gross NSW wages paid by other members of the group
  • gross interstate wages paid by other members of the group.

Saving your information

You can save the information entered and return to complete the form later.

  • You can see previous monthly calculations and modify the calculation for each month.
  • All saved monthly calculations can be viewed through the ‘Return History Summary’ screen.

Estimate calculation method

Existing taxpayer

If you had a payroll tax liability in NSW less than $150,000 in the previous financial year, you'll need to calculate your estimate using the following examples as a guide.

Example 1: Vanilla Pty Ltd employed for the full 2018/19 financial year (365 days), with a total NSW payroll tax liability of $35,000.

Calculation of estimate – existing taxpayerEmployed for all of the previous financial year
(Total tax payable in previous financial year x 1 + current rate*) / total number of days employed in previous financial year(35,000 x 1.03) / 365 = 98.77
Daily estimate x (365/12) 98.77 x (365/12) = $3,004
Monthly estimate for July – May $3,004

Example 2: Strawberry Pty Ltd began employing in Australia on 1 October 2018 and, therefore, only employed for 273 days in the 2018/19 financial year. Their total NSW payroll tax liability for the previous financial year was $25,000.

Calculation of estimate – existing taxpayerEmployed for part of the previous financial year
(Total tax payable in previous financial year x 1 + current rate*) / total number of days employed in previous financial year(25,000 x 1.03) / 273 = 94.32
Daily estimate x (365/12) 94.32 x (365/12) = $2,869
Monthly estimate for July – May $2,869

*The current rate is 3%.

New taxpayer

If you didn't have a payroll tax liability in NSW for the previous financial year, you'll need to have paid payroll tax for at least three separate months in the current financial year before you can use the estimate method.

Example 3: Chocolate Pty Ltd started employing in NSW as of 1 July 2019 and 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 – new taxpayerPayments paid for 3 months of the current financial year
Total tax paid in the current financial year / total number of days to which the paid payroll tax relates to. 6,000 / 92 = 65.22
Daily estimate x (365/12) 65.22 x (365/12) = $1,984
Monthly estimate for October – May $1,984

Example 4: Caramel Pty Ltd started employing in NSW as of 1 August 2019 and paid payroll tax of $15,000 in the current financial year for the months of August, September, October and November (a total of 122 days). They have decided to use the estimate method for the remainder of the financial year.

Calculation of estimate – new taxpayerPayments paid for 4 months of the current financial year
Total tax paid in the current financial year / total number of days to which the paid payroll tax relates to. 15,000 / 122 = 122.95
Daily estimate x (365/12) 122.95 x (365/12) = $3,740
Monthly estimate for December – May $3,740

Once you've determined your estimate amount, you can enter and save the amount for a month, and/or for the remaining months of the financial year, in the monthly calculator. You can also schedule your direct debit payments.

Using the estimate option in the monthly calculator won't pre-populate your estimate amounts in your annual reconciliation at the end of the financial year.

Monthly example calculations for the 2019-20 financial year

The payroll tax rate is 5.45 per cent. From 1 July 2019, the threshold is $900,000. Your monthly threshold is calculated using the number of days in the month, divided by the number of days in the year, multiplied by the threshold.

Non-grouped employer paying wages in NSW only

The payroll tax liability if your NSW wages for the full month of July are $115,000.

Calculation of threshold for period of employmentMonthly - full period

(Number of days employing x threshold) / Number of days in the period

(31 x $900,000) / 366 = $76,230

If employing for less than a full month,
use the number of actual employment days.

Calculation of employers tax payable for the period 
(Employers NSW wages - threshold for the period) x tax rate on the balance($115,000 - $76,230) x 5.45% = $2,112.97

Non-grouped employer paying wages in NSW and interstate

The payroll tax liability if your NSW wages for the full month of April 2019 are $115,000 and interstate wages are $50,000. Making your total Australian wages $165,000.

Calculation of threshold for period of employmentMonthly - full period

(Number of days employing x threshold) / Number of days in period

(30 x $900,000) / 366 = $73,770

If employing for less than a full month,
use the number of actual employment days.

(NSW wages x threshold) / Employer's total Australian wages($115,000 x $73,770) / $165,000 = $51,415
Calculation of employer's tax payable for the period 
(Employers NSW wages - threshold for the period) x tax rate on the balance($115,000 - $51,415) x 5.45% = $3,465.38

Grouped employer paying as the designated group employer

The payroll tax liability if your business is grouped with another business for the full month of November 2018. Your NSW wages are $80,000, the other group members total NSW wages are $50,000 and the group’s total Australian wages are $200,000.

Calculation of threshold for period of employmentMonthly - full period

(Number of days employing x threshold) / Number of days in period

(30 x $900,000) / 366 = $73,770

If employing for less than a full month,
use the number of actual employment days.

Calculation of threshold for period of employment 
(Total NSW wages of group x threshold) / Total Australian group wages(($80,000 + $50,000) x $73,770) / $200,000 = $47,951
Calculation of employer's tax payable for the period 
(Employers NSW wages - threshold for the period) x tax rate on the balance($80,000 - $47,951) x 5.45% = $1,746.67

Apprentice/trainee wages

If you employ apprentices or trainees and want to calculate the apprentice/trainee offset, you will need to do the following:

  1. Include all apprentice/trainees wages
  2. Exclude all apprentice/trainees wages
  3. Subtract calculation 2 from calculation 1 = apprentice/trainee offset.

Annual reconciliation

The due date for lodging your payroll tax annual reconciliation and payment is 28 July, or the next business day if that date falls on a weekend. As the 28th falls on a weekend this year, the 2019 Payroll Tax Annual Reconciliation is due on 29 July 2019.

Lodge your annual reconciliation

If you have all the required information, it should take about 30 minutes to complete your annual reconciliation.

Remember

  • The payroll tax letters mailed out in June 2019, contains instructions on how to lodge and pay your 2019 annual reconciliation and make monthly payments for the 2019-20 financial year.
  • If you’re an agent lodging on behalf of a business, you must provide your contact details, business name and ABN.
  • If you’re due a refund, provide your bank account details or if you have an overseas bank account, call us on 1300 139 815 to get information on how to complete your annual reconciliation.
  • You will get an email and a lodgement reference number confirming your annual reconciliation is received.
  • Use the 'save' button, as you will be timed out after 45 minutes of no activity.

Login

You can log in using your client ID and correspondence ID (from your most recent correspondence from us) – your correspondence ID is only valid for 12 months

To register to pay your payroll tax online, you need:

  • your BSB and bank account numbers
  • account name
  • financial institution
  • email address
  • contact name, and
  • daytime phone number.

Information required  for lodging

Make sure you have all the necessary details before starting the online form.

Customer details

  • contact name, email address and contact number and, if you’re an agent lodging on behalf of a company, you must provide your business name and ABN
  • your ABN or ARBN
  • if you employed for less than the full financial year, the start and end dates of employment.

If you employ interstate

Declare other states where you employed.

If you employ apprentices and trainees

Declare the number of apprentices and trainees you employed during the year.

Your NSW wages

  • salaries and wages
  • fringe benefits
  • employer superannuation contributions
  • termination payments
  • contractor payments
  • allowances
  • bonuses and commissions
  • directors’ fees
  • shares and options
  • apprentice and trainee wages.

Your total interstate wages

Total interstate wages comprise wage components liable for payroll tax in the state or territory where the interstate wages are paid. Read more on interstate wages and how to determine which state or territory wages are paid.

Grouping

If you’re a member of a group and are claiming the threshold, or you’re the nominated group single lodger, you also need:

  • gross NSW wages paid by other members of the group
  • gross interstate wages paid by other members of the group
  • NSW client IDs of all group members (if applicable).

If you’re not claiming the threshold, you must provide the NSW client ID of your designated group employer (DGE), if known. If not known, provide the DGE’s name.

For more information, read the grouping page.

Privacy

Information collected from you on the registration form helps us determine if you have a liability or entitlement. The information may be provided to third parties with your consent or as required or permitted by law. We will correct or update your personal information at your request. You can read our privacy page for more information.

Standard Business Reporting initiative

For more information on SBR, SBR-enabled services, SBR policies and other government agencies participating in SBR, visit the SBR website.

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