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Legal entity
Salary and wages
Allowances
Termination payments
Super
Fringe benefits
Director and management fees
Expatriate employees
Shares and options
Apprentices and trainees
Employment agents
Contractors
Summary
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Payroll tax self assessment

Legal entity

You will be asked a series of questions to determine whether or not you are entitled to the full or a reduced NSW payroll tax threshold.

Do you consider your business to be grouped with other entities for payroll tax purposes? Read more information about Grouping.

Yes No

What type of legal entity does your business operate under?

Legal entity type -

Is the owner of this business a majority (>50%) director, shareholder, partner or beneficiary of another business?

Yes No

Do any of your employees perform duties for another business under that business's direction and control?

Yes No

Do any employees of another business (other than those obtained from an employment agency) perform duties for you under your direction and control?

Yes No

Your business may be grouped with those other business(es). Before you go on, please read this information about the rules about and implications of establishing a payroll tax group and review your business's situation.

Having reviewed the grouping information, do you now consider your business to be grouped with other entities?

Yes No

If your business is carried on significantly independently from the other members of the group you may be entitled to be excluded from the group. See Revenue Ruling PTA 031 for more information.

Are you the group's Designated Group Employer (DGE) or Single Lodger?

Yes No

Do you or any group members pay taxable wages in any other Australian state or territory? Please refer to Revenue Ruling PTA 039 on our website.

Yes No

Do you pay taxable wages in any other Australian state or territory? Please refer to Revenue Ruling PTA 039 on our website.

Yes No

Have you been claiming a NSW payroll tax threshold in your annual returns?

Yes No

Have you been claiming a NSW payroll tax threshold in your annual returns?

Yes No

Have you included interstate wages in your annual returns?

Yes No

Based on the information you have provided, you are correctly claiming the NSW payroll tax threshold.

Based on the information you have provided, you are entitled to claim the full NSW payroll tax threshold. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Based on the information you have provided, you are not entitled to claim a NSW payroll tax threshold (only a DGE or Single Lodger can claim a threshold). If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Based on the information you have provided, you may have claimed a higher threshold than you were entitled to receive (and under-paid payroll tax). You will need to lodge amended annual returns - please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Based on the information you have provided, you are correctly lodging your payroll tax returns.

Salary and wages

Does your business pay any wages or salaries to employees and key personnel (including ordinary wages, bonuses and commissions, backpay, etc)?

Yes No

Have you included the gross amount of all relevant liable categories of salaries and wages payments in this checklist as part of your taxable wages in your annual returns?

Yes No

Some wages are exempt based on the circumstances in which they are paid. This includes wages paid to employees on maternity, paternity or adoption leave or on military leave.

Based on the information you have provided, you may not have declared the correct amount of salaries and wages for Payroll Tax. Please examine why the payments were not included for Payroll Tax and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Some wages are exempt based on the circumstances in which they are paid. This includes wages paid to employees on maternity, paternity or adoption leave or on military leave.

Based on the information you have provided, you are correctly declaring your salaries and wages for payroll tax purposes.

Allowances

Does your business pay any allowances to employees and key personnel (including any allowances that may be income tax exempt for the recipient)?

Yes No

All allowances paid to an employee are liable for payroll tax except for the exempt component of both the overnight accommodation and motor vehicle allowance or if they are a direct reimbursement against a receipt. Read more about Wages and Allowances.

Do you pay any motor vehicle allowances?

Yes No

Are the motor vehicle allowances paid with reference to the business kilometres travelled?

Yes No

Have you correctly applied a full or partial exemption to the motor vehicle allowances? Please refer to Revenue Ruling PTA 005v3 on our website for an explanation of how the exemption is applied.

Yes No

Motor vehicle allowances paid at an agreed amount without reference to the business kilometers travelled are liable for Payroll Tax.

Based on the information you have entered, you may not have correctly claimed exemptions for motor vehicle allowances. Please review and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Do you pay any overnight accommodation allowances for a night's absence from the employee's usual place of residence (also known as per diem allowances, or travel allowances)? Revenue Ruling PTA 005v3 explains how the exemption is applied.

Yes No

Overnight accommodation allowances paid within daily limits are exempt for Payroll Tax. Amounts exceeding the daily limit are liable for Payroll Tax. View our Rates and thresholds page for more information.

Have you correctly applied a full or partial exemption to the overnight accommodation allowances? Revenue Ruling PTA 005v3 explains how the exemption is applied.

Yes No

Based on the information you have entered, you may not have correctly claimed exemptions for overnight accommodation allowances. Please review and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Do you pay any Living Away From Home Allowances (LAFHA)? See Fringe Benefits Tax Assessment Act 1986 for more details.

Yes No

A living away from home allowance is paid to an employee who has moved and taken up temporary residence away from their usual place of residence so that they are able to carry out their employment duties at a new, temporary workplace. This allowance is liable only if it exceeds the reasonable benefit limits under the Fringe Benefits Tax Assessment Act 1986.

Are the LAFHA payments treated as a fringe benefit for FBT purposes? The ATO website gives more details.

Yes No

If the LAFHA payment does not qualify as a living away from home allowance benefit under the FBT Act, it will be treated in the same manner as an overnight accommodation allowance and may be eligible for the same concessional treatment as overnight accommodation allowances. Revenue Ruling PTA 005v3 explains how the exemption is applied.

Any taxable value associated with the LAFHA should only be included in your annual return as part of liable grossed up fringe benefits , and not separately reported as part of wages or allowances. Please refer to our website for information on The gross up rate.

Have you included all allowances paid in your payroll tax returns (excluding any exempt components of Motor Vehicle and Overnight Accommodation allowances)?

Yes No

Based on the information you have provided, you may not have declared the correct amount of allowances for Payroll Tax.

Some common mistakes include:

failing to include allowances paid under an award (meal, tool, clothing, etc)
agreement that may be exempt for income tax purposes but liable for Payroll Tax purposes

Please examine why the payments were not included for Payroll Tax and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Based on the information you have provided, you are correctly declaring allowances for Payroll Tax purposes.

Termination payments

Has your business made any termination payments (payout of unused leave entitlements, severance or redundancy pay, etc) in respect of terminated employees?

Yes No

All termination payments that are liable for income tax in the hands of the recipient are also liable for Payroll Tax. Any income tax exempt payments, such as Termination Lump Sum D or 'Genuine Redundancy' payments are also exempt from Payroll Tax. Please refer to Revenue Ruling PTA 004 on our website for more detail.

Have you included in your annual returns all termination payments other than income tax exempt payments (eg. Termination Lump Sum D payments)?

Yes No

Based on the information you have provided, you may not be correctly declaring termination payments in your annual returns. Please review and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Based on the information you have provided, you are correctly including liable termination payments in your annual returns.

Super

Does your business make any Superannuation contributions (including salary sacrificed amounts, or lump sum 'top up' payments) on behalf of employees or key personnel of the business?

Yes No

Have you included all these payments as part of your taxable wages?

Yes No

Based on the information you have provided, you are correctly declaring your superannuation contributions for payroll tax purposes.

Based on the information you have provided, you may not have declared the correct amount of superannuation contributions for Payroll Tax.

Some common mistakes include:

failing to include salary sacrificed superannuation contributions
failing to include end of financial year lump sum contributions on behalf of directors and key personnel.

Fringe benefits

Does your business have a Fringe Benefits Tax liability? See Revenue Ruling PTA 003v3 for more information.

Yes No

Have you included in your payroll tax annual returns the NSW portion of the aggregate value of type 1 and type 2 fringe benefits (excluding income tax exempt body entertainment benefits), grossed up by the type 2 (lower) gross up factor?

From April 2017 the FBT type 2 gross-up rate decreased from 1.9608 to 1.8868. Revenue NSW decided to accept the use of the lower rate for the 2016/17 and 2017/2018 financial years.

Yes No

The interstate portion of the gross up taxable FBT component should be included in interstate wages in your annual returns.

Based on the information you have provided, you are correctly declaring your fringe benefits for payroll tax purposes.

The interstate portion of the gross up taxable FBT component should be included in interstate wages in your annual returns.

Based on the information you have provided, you may have not declared the correct amount of fringe benefits for Payroll Tax. Please review and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Some common mistakes include:

incorrectly using reportable fringe benefits.
the fringe benefits taxable amount, or the amount of actual FBT paid.
using the incorrect gross up factor (type 1).
failing to correctly apportion fringe benefits between Australian jurisdictions.

Director and management fees

Did your business pay any 'Directors Fees', 'Management Fees', or 'Consulting Fees' to key personnel, either directly or indirectly (such as to their personal company, partnership or trust), for services they provided your business? Read more about Directors Fees and Third Party Payments.

Yes No

Have you included all these payments as part of your taxable wages?

Yes No

Based on the information you have provided, you are correctly declaring taxable wages in relation to key personnel of the business.

Based on the information you have provided, you may not have declared the correct amount of taxable wages in relation to these key personnel. Please examine why the payments were not included for Payroll Tax and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Expatriate employees

Does your business have any NSW based employees on assignment in another country?

Yes No

Do the relevant employees still receive their wages in NSW (ie. they are paid into a NSW bank account)?

Yes No

Is the assignment for a continuous period of more than 6 months?

Yes No

All amounts received by the relevant employee in NSW are exempt from Payroll Tax commencing on the date the employee first began working overseas. Please see Revenue Ruling PTA 002 for more details.

All amounts received by the relevant employees outside of Australia are not liable for NSW Payroll Tax. Please see Revenue Ruling PTA 002 for more details.

All amounts received by the relevant employees in NSW are liable for Payroll Tax. Please see Revenue Ruling PTA 002 for more details.

Are there any expatriate employees of an overseas parent company or group member working for your business in NSW?

Yes No

Are there any expatriate employees of an overseas parent company or group member working for your business in NSW?

Yes No

Do the relevant employees receive their wages in NSW (ie. they are paid into a NSW bank account)?

Yes No

All amounts paid to the expatriate employee are liable for payroll tax in NSW in any calendar month where the employee works wholly or partly in NSW. Please see Revenue Ruling PTA 002 for more details.

Do the relevant employees receive their wages in another Australian state or territory?

Yes No

All amounts paid to the expatriate employee are liable for payroll tax in NSW in any calendar month where the employee works wholly in NSW. Please see Revenue Ruling PTA 002 for more details.

All amounts paid to the expatriate employee are liable for payroll tax in NSW in any calendar month where the employee works mainly in NSW. Please see Revenue Ruling PTA 002 for more details.

After reviewing Revenue Ruling PTA 002 rules, have you correctly treated payments made in respect of NSW based employees on overseas assignment and/or overseas based expatriates working in Australia?

Yes No

Based on the information you have provided, you appear to be incorrectly treating payments made in respect of expatriate employees. Please review payments made to these employees and amend your annual returns if required.

Based on the information you have provided, you appear to be correctly treating payments made in respect of expatriate employees.

Shares and options

Does the business offer shares and/or options to employees or key personnel? Please see our Shares and Options page for more details.

Yes No

Was the Share or Option granted in the company that is the employer or its parent company?

Yes No

The grant is not an ESS interest in an employee share scheme and is not liable under shares and options provisions but is still potentially liable as a fringe benefit (see s.18(1) of PTA).

If a share, was it granted as a result of an exercised option which was declared liable at option grant date?

Yes No

Grant of share is not liable as it would lead to double taxation. See s.22(a) of PTA.

If an option, was it granted prior to 1 July 2003?

Yes No

Option granted prior to introduction of shares and options provisions. Not liable . See s.22(b) of PTA.

Was the employee providing services overseas in the month in which the share or option was granted?

Yes No

Is the share in a 'local' Australian registered company?

Yes No

'Relevant day' must be the grant date, with nil taxable value for PRT. See s.20(2) of PTA.

Was share/option granted while employee was overseas for greater than 6 months

Yes No

S.66A of the PTA exemption applies and 'Relevant day' must be the grant date, with nil taxable value for PRT. See s.20(2) of PTA.

If the share is granted in a company registered in NSW, wages may be taxable in NSW. If share is granted in a company registered in another Australian jurisdiction, wages may be taxable as Interstate wages.

The taxable value of the grant of the share or option is its market value (or amount determined by the Commonwealth Income Tax provisions - refer s.23 of the PTA) on the 'relevant day' less the value of any consideration paid by the employee (disregarding the provision of services).

Was the taxable value of the share or option nil at grant date?

Yes No

'Relevant day' must be the grant date, with nil taxable value for PRT. See s.20(2) of PTA.

Was the PRT taxable value at grant date correctly included in the annual return in the year of grant?

Yes No

You are deemed to have elected to treat the vesting date as the 'relevant day'. See s.20(1) of the PTA.
For shares, the vesting date is usually the date when any conditions attached to the grant of the shares have been met and the share cannot be rescinded. For options, this is usually the date the option was exercised. However for both shares and options, the vesting date is taken to be 7 years after the grant date if it has not vested by that point.

Was the employee providing services overseas in the month in which the share or option vested?

Yes No

Is the share in a 'local' Australian registered company?

Yes No

Did share/option vest while employee was overseas for greater than 6 months?

Yes No

Does not meet nexus conditions to make the vesting taxable in NSW. See s.11 of the PTA.

Grant of shares/option is exempt under s.66A of the PTA.

If the share is granted in a company registered in NSW, wages may be taxable in NSW. If share is granted in a company registered in another Australian jurisdiction, wages may be taxable as Interstate wages.

Was the PRT taxable value at grant date correctly included in return in year of vesting?

Yes No

Based on the information you have entered, you appear to be including the correct amount of taxable wages arising from the grant of shares or options to employees.

Based on the information you have entered, you appear to be including the incorrect amount of taxable wages arising from the grant of shares or options to employees. Please review your taxable wages calculations and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Based on the information you have entered, there appears to be no taxable wages arising from the grant of shares or options to your employees or key personnel. If you have incorrectly included taxable wages relating to these grants of shares or options, please review and amend your annual returns if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Apprentices and trainees

Does your business employ any apprentices and/or trainees? Please see our Apprentice and Trainee page for more details.

Yes No

Have you included all taxable wages (salaries, wages, superannuation, allowances and termination payments, etc) made to these apprentices and/or trainees in your annual payroll tax returns? (These should be reported in the apprentice/ trainee field)

Yes No

All taxable wages should be included as part of your annual return. However, you may be eligible for a payroll tax rebate for wages paid to the apprentices and/or trainees.

Have the apprentices and/or trainees commenced a course recognised or approved by the Training Services NSW?

Yes No

Have the apprentices and/or trainees commenced a course recognised or approved by the NSW Department of Industry?

Yes No

You are eligible to claim a rebate on the following taxable wages:
apprentices: all taxable wages paid to the apprentice during the period that the apprentice was in an approved apprenticeship.
trainees: all taxable wages paid to the trainee during the period that the trainee was in an approved ‘new entrant’ traineeship. For more information about the new entrant/existing worker status and how it’s determined, view the Training Services NSW new entrant trainee policy.

Having reviewed the eligibility criteria, did you correctly claim the apprentice and/or trainee rebate in your annual returns?

Yes No

Having reviewed the eligibility criteria, are you able to claim the apprentice and/or trainee rebate?

Yes No

Did you claim a rebate on the taxable wages paid to the apprentices and/or trainees?

Yes No

Based on the information you have provided, you may not have correctly claimed the apprentices and trainees rebate in your annual returns. Please review your annual returns and include all taxable wages paid to apprentices and/or trainees and claim the rebate.

Based on the information you have provided, you appear to have incorrectly claimed the apprentices and trainee rebate in your annual returns. Please review your annual returns and include all taxable wages paid to apprentices and/or trainees as part of ordinary salaries and wages.

Based on the information you have provided, you appear to have incorrectly excluded taxable wages paid to apprentices and trainees from your annual returns, however you appear to be eligible to claim the apprentice/trainee payroll tax rebate. Please review your annual returns and include all taxable wages paid to apprentices and/or trainees and claim the rebate.

Based on the information you have provided, you appear to have correctly included all taxable wages paid to apprentices and trainees in your annual returns.

Based on the information you have provided, you are not eligible for the apprentice and/or trainee rebate, and you have incorrectly excluded taxable wages paid to apprentices and trainees from your annual returns.

Please review your annual returns and include all taxable wages paid to apprentices and/or trainees but do not claim any rebate.

Employment agents

Does your business make any payments to a service provider under a contract?

The employment agencies provisions can apply to any situation where an arrangement is made for the provision of labour. You should consider each arrangement separately. These provisions can apply whether you consider your business to be an employment agency or not. Please refer to Employment Agencies page for more details.

Yes No

Do you arrange contracts for service between the service provider and another business or client?

(i.e.) is there a contract between:

your entity
service Provider
another Business

Please refer to Revenue Ruling PTA 027 for more details.

Yes No

Do you place the service provider in another business to provide services to them?

Yes No

Do you place the service provider with the ultimate client business?

Yes No

Does another entity provide your business with the service provider?

Yes No

Based on your answer, the service provider performs services directly to your business.

Do you pay the business provider directly for their service?

Yes No

Based on the information you have entered, you are not liable for these payments and are not the liable employment agent. This means that none of the payments made to the other employment agency should be included as part of your taxable wages.

Do you place the service provider with another employment agent, who then places them with the ultimate client business?

Yes No

Do you receive the service provider from another employment agency?

Yes No

Based on the information you have entered, you are engaged in an on hire arrangement and are not the liable employment agent. This means that none of the payments made to the other employment agency should be included as part of your taxable wages.

Based on the information you have entered, you are an employment agent. This means that all payments made to these individuals (excluding GST) should be included as part of your taxable wages.

Based on the information you have entered, you are engaged in an on hire arrangement. You are the employment agent which is paid by the ultimate client. You are liable for the amounts you pay to the second employment agency. This means that all of the payments made to the other employment agency should be included as part of your taxable wages.

NOTE: To confirm this arrangement you are required to have the second employment agent complete the Revenue NSW Payroll Tax For OPT 020 (Employment Agency Contracts - Chain of on-hire declaration) available on our website.

Has employment agency number 2 declared that they are liable for payroll tax and will include these amounts in the annual return?

Yes No

Based on the information you have entered, employment agency number 2 would be liable for these payments, however, as their own wages are not above the threshold, you are liable for the amounts you pay to the service provider. This means that all of the payments made to the service provider should be included as part of your taxable wages.

Have you correctly included in your annual returns all payments of this nature?

Yes No

Based on the information you have entered, you appear to be correctly including in your annual returns any liable payments made under employment agency arrangements.

Based on the information you have entered, the amount of taxable wages paid under employment agency arrangements disclosed in your annual returns appears to be incorrect. Please review all payments made under these arrangements declared in your annual returns and amend if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Contractors

Does your business make any payments to contractors or consultants-this includes any entity that you engage to provide your business with a service?

Yes No

Were any of the contractors or consultants a natural person you engaged directly (ie they were not a company, partnership or trust)?

Yes No

Natural persons engaged as contractors and consultants can be deemed to be employees under common law, based on a range of factors of your relationship with them. Please refer to Revenue Ruling PTA 038 for more details.
As a guide, you may use the ATO contractor/employee decision tool to assist you in making a determination in respect of the relevant contractors or consultants.
Please note: The result of using the ATO tool is to be used as a guide only. Any review we undertake of the arrangements may result in a different determination. Should you have any doubts, please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Did your review of the arrangements indicate that the relevant contractors or consultants were employees under common law?

Yes No

Based on the information you have entered, the natural person contractors and consultants you have engaged are not considered to be employees under common law, however payments made to them may still be liable for Payroll Tax under 'relevant contractor' provisions.

Based on the information you have entered, the natural person contractors and consultants you have engaged are considered to be employees under common law. This means that all payments made to these individuals (excluding GST) should be included as part of your taxable wages.

All payments (excluding GST and non-labour components) made to contractors or consultants (who are not deemed to be employees at common law) are liable for payroll tax under s.32 of the Payroll Tax Act 2007 unless they meet the criteria for an exemption.
Before proceeding, use the Contractor page to help you determine whether an exemption applies.
You can also contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Have you correctly included in your annual returns all payments made to:

deemed employees (all payments excluding GST)
all other contractors or consultants not eligible for exemption (all payments excluding GST and non-labour component).

Yes No

Based on the information you have entered, you appear to be correctly including in your annual returns any liable payments made to contractors and consultants.

Based on the information you have entered, the amount of taxable wages paid to contractors and consultants disclosed in your annual returns appears to be incorrect. Please review all contractor and consultant payments declared in your annual returns and amend if necessary. If you need to lodge amended annual returns please contact us on 1300 139 815 or payrolltax@revenue.nsw.gov.au.

Summary of decisions

Checklist	Status