Payroll tax is imposed by each State and Territory on wages and benefits paid or payable to employees.
The tax rate varies as does the amount of the threshold entitlement available to business operators.
Payments made to independent contractors can be subject to payroll tax.
In New South Wales payroll tax is payable on gross wages in excess of $623,000 at 5.75%
Most businesses with gross wages over the thresholds are required to lodge figures to State Governments on a monthly basis.