Payroll tax is a state and territory tax assessed on wages paid by an employer to its employees, when the total wage bill of an employer (or group of employers) exceeds a threshold amount. The payroll tax rates and thresholds vary between states and territories.
If a business is expected to exceed the threshold in their particular state or territory then they must register for payroll tax.
Payroll tax is payable to the State or territory by an employer based on the total wages paid to all employees less the threshold.
This is not to be confused with PAYG Withholding tax which is payable to the Australian Taxation Office and is deducted from individuals salary & wages and reported on an Activity Statement (BAS or IAS).
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