Payroll tax is applied to a business’s New South Wales (NSW) wages that exceed the payroll tax threshold.
The payroll tax rate is 5.45%.
The payroll tax threshold for 2017-18 (July – June) is $750,000.
What payments are liable for payroll tax?
Payments liable for payroll tax include:
- Apprentice and trainee wages
- Bonuses and commissions
- Contractor and consultant wages
- Director’s fees and other payments
- Employment agency contracts
- Fringe benefits
- Salary sacrifice
- Shares and options
- Termination payments
- Third party payments
Courtesy: NSW Revenue