Payroll tax 2020-2021 frequently asked questions

Has the Monthly Calculator been updated with the new tax rate and threshold?

Yes, the calculator has been updated to reflect the recent changes.

I don’t use the Monthly Calculator; how do I recalculate the amount of tax I should have paid for the current year?

You can use the Monthly Calculator to recalculate your previous months liabilities based on the new tax rate and threshold.

The Monthly Calculator is available through Online Services and you will need your Client ID and Correspondence ID to log in.

The information you will need to use in the calculator is your total NSW and interstate wages and grouping information.

Once you have determined your adjusted liability for each of the months you have paid, you will need to manually calculate your overpayment. I.e. previous tax paid minus the adjusted tax liability.

The difference is the amount that you can reduce your next month’s liability by. If you do not have a tax payable for any monthly return, you are still required to lodge a nil return. You can lodge a nil return via our Online Services.

If there is still an overpaid amount, you can reduce the next months liability by what remains.

How do I recalculate the amount of tax I should have paid for the current year if I used the Monthly Calculator?

You can use the Monthly Calculator (available through Online Services) to recalculate your previous months liabilities based on the new tax rate and threshold.

To do this go to our Online Services, log into the Monthly Calculator then go to “Return history summary”. Select the lodgement date hyperlink for the period then select the “Modify calculation” button then select “Save”.

The calculation will update your tax liability for the period taking into account the new tax rate and threshold for the month.

Once you have determined your adjusted liability, you can reference your previous tax payable and payments received for each of those monthly periods by selecting “Return history summary”.

You then need to manually calculate your overpayment. I.e. previous tax paid minus the adjusted tax liability.

The difference is the amount that you can reduce your next month’s liability by. If you do not have a tax payable for any monthly return, you are still required to lodge a nil return. You can lodge a nil return via our Online Services.

If there is still an overpaid amount, you can reduce the next months liability by what remains.

I used the Revenue NSW monthly calculator for July, August, September and October 2020 periods, will the existing calculations be re-calculated automatically?

No. You will need to modify and save these periods to determine the amount you can reduce your future payments by.

Can I apply for a  refund of the overpaid tax for the current financial year?

We are experiencing high demand for reassessments and processing times maybe longer than usual. To receive the immediate benefits of the rate and threshold changes we encourage customers to reduce future monthly returns by the overpaid amount.

For example, a customer has an overpayment amount of $5,000 relating to July, August, September and October 2020. The liability for the next monthly return is $8,000. Therefore, the customer will only need to make a payment of $3,000 ($8,000 minus $5,000) for the next monthly return.

At the end of the financial year your payroll tax account will be reconciled when you lodge your 2020/21 annual reconciliation.

However, if you would like a refund of your current year overpayments, please send an email to payrolltax@revenue.nsw.gov.au. In that email, please advise us what your amended liability is for each period and your expected refund amount.

Can I use my overpaid tax to reduce a future monthly return?

Yes, you will need to re-calculate the monthly liability for each period and the difference is the amount that you can reduce your next month’s liability by.

For example, a refund of $5,000 is due for overpayments relating to July, August, September and October 2020. The liability for the next monthly return is $8,000. You will only need to make a payment of $3,000 ($8,000 minus $5,000) for your next monthly return.

If you do not have a tax payable for any monthly return, you are still required to lodge a nil return. You can lodge a nil return via our Online Services.

If there is still an overpaid amount, you can reduce the next months liability by what remains.

I have a Stimulus Payment Arrangement which includes amounts for the 2020 financial year as well as July, August and September 2020, how do I modify my plan?

You will need to send an email to payrolltax@revenue.nsw.gov.au with your amended tax liability for those periods. We will update your arrangement with the new liability.

I have a Stimulus Payment Arrangement which only includes amounts for July, August and September 2020 and I am now below the threshold. How do I cancel the plan and have my payments refunded?

You will need to send an email to payrolltax@revenue.nsw.gov.au with your amended tax liability for those periods and advice that you wish to cancel your Payroll tax registration.

A member of the team will then withdraw the Stimulus Payment Arrangement plan, refund any money paid and cancel your registration.

I am a direct debit customer; how do I reduce my next return by the overpaid amount?

You can still use the online monthly calculator to work out the adjusted tax payable for the July, August, September and October 2020 monthly periods. See the question above “How do I recalculate the amount of tax I should have paid for the current year if I used the Monthly Calculator?”.

However, you cannot make a payment using the online calculator. Instead, you will then need to make your next reduced payment using either EFT or BPAY codes.

You can obtain these by contacting the team on payrolltax@revenue.nsw.gov.au or on 1300 139 815.

Alternatively you can request a refund of the overpayments by sending an email to payrolltax@revenue.nsw.gov.au. In that email, please advise us what your amended liability is for each period and your expected refund amount.

My next monthly return is less than my overpaid amount. What should I do?

If you do not have a tax payable for any monthly return, you are still required to lodge a nil return. You can lodge a nil return via our Online Services.

If there is still an overpaid amount, you can reduce the next months liability by what remains.

I have made payments for the July, August, September and October period but am now below the increased threshold. What do I need to do?

If your wages have fallen below the threshold and you are no longer liable for payroll tax, you will need to lodge an online cancellation form.

You can lodge an online cancellation form via our Online Services. When the cancellation form is processed we will issue a refund for any overpayments.

I have recently registered for Payroll tax and due to the increase in the threshold I will no longer be liable. What do I need to do?

If your wages have fallen below the threshold and you are no longer liable for payroll tax, you will need to lodge an online cancellation form.

You can lodge an online cancellation form via our Online Services. When the cancellation form is processed we will issue a refund for any overpayments.

I’m on an annual payment frequency and my wages will fall under the threshold, what do I need to do?

If your wages have fallen below the threshold and you are no longer liable for payroll tax, you will need to lodge an online cancellation form.

You can lodge an online cancellation form via our Online services.

I’m on a monthly payment frequency and my monthly tax payable will reduce due to the threshold increase. Can I change my frequency to annual?

If your estimated tax payable in a financial year is $20,000 or less, you can choose to pay annually. To change your frequency from monthly to annual, you will need to send an email to payrolltax@revenue.nsw.gov.au, requesting your frequency to be changed to annual and advise what your estimated monthly NSW and Australian wages will be.