Payroll Tax is a self-assessed state and territory tax calculated on wages paid by Employers. Employers are required to pay Payroll Tax once their Annual wages reach a set threshold (this threshold varies from State to State).

Depending on the State and the total Payroll Tax Liability payable by the Business for the year, Businesses may require to lodge and pay Payroll Tax either monthly or annually (some states also have 6 monthly and quarterly options available).

When Payroll Tax is lodged monthly, Employers must lodge a monthly return for each month from July to May. The June return is then combined with the Annual Payroll Tax assessment. Therefore, in June an Employer will need to report both June's Payroll Tax Liability and any adjustments from July to May.

The lodgement date for the July to May Lodgements is on the 7th of each month, the June/Annual lodgement instead is due on the 28th of July.

Once the correct Payroll Tax Liability is calculated, it needs to be lodged through the relevant Office of State Revenue Portal. Each State Portal requires Wages and Salaries information to be presented in a slightly different way.

Lodge and Pay a Monthly Actual Payroll Tax Return in NSW

To lodge Payroll Tax in NSW, users require a Client ID and a Correspondence ID. The Correspondence ID changes every year and it is sent to the Business by post.

1. Log in to Revenue NSW at: https://www.apps07.osr.nsw.gov.au/mars-online/pages/payrollTax/online_services.jsf
   
   è  Revenue NSW Login screen
   
   
2. Log in using your Client ID and Correspondence ID
   
   è  Revenue NSW - Payroll tax online services
   
   
3. Click on Calculate a monthly return
   
   è  The revenue NSW - Payroll tax monthly payment calculator screen opens
   
   
   
   
4. Select/Enter the following details:
   • Return Period > This defaults to the last unlodged period, confirm this is the correct period or change it to a different one
   • Calculation Method > Select: Actual
   • Threshold Calculation Basis > Select the option as per your Business Reporting Requirements
   • NSW wage components > Enter the NSW Wages breakdown including any cents
     Note: make sure you enter 0.00 for any wage components not applicable to this return
   • Interstate Wages > if your Business employs staff in multiple States enter the total wages from all other States 
5. Click on [Calculate and save]
   
   è  The revenue NSW - Payroll tax monthly payment calculator confirmation screen opens
   
   
   
   
6. If you are using a Payroll Tax calculator tool check that the total tax payable calculated by the NSW Payroll Tax Calculator matches your calculations
7. Click on [Print] and save the return for your records
8. To pay your Payroll Tax return click on [Pay online]
   
   è  The revenue NSW - Payroll tax - online payment, direct debit screen opens
   
   
   
   
9. Confirm your Payment Details and amount and click on [Pay]