Example Calculations for the

2010–11 Financial Year

Monthly calculations
From 1 July 2010 to 31 December 2010 the payroll tax rate is 5.5 per cent.
From 1 January 2011 the payroll tax rate is 5.45 per cent.
From 1 July 2010 the threshold is $658 000
Your monthly threshold is calculated using the number of days in
the month, divided by the number of days in the year, multiplied by
the threshold.

Days in months Threshold

28 $50 477
30 $54 082
31 $55 885

Example Calculations for the 2010–11 Financial Year 1 of 7

1 Non-grouped employer paying wages in NSW only
Tax rate 1 July 2010 to 31 December 2010 is 5.5 per cent.

Monthly – Full Period

Assume your NSW wages for October 2010 are $116 667.

Calculation of threshold for period of employment Note: If employing for less than the full month, use the number of days you
actually employed

No. of days employing x threshold 31 x $658 000 = $55 885

No. of days in period 365

Calculation of employer’s tax payable for the period Calculation 1 – including apprentices/trainees

Employer’s NSW wages for the period $116 667

Less threshold for the period $ 55 885
Tax on the balance $ 60 782 x 5.5% = $3 343.01

Example Calculations for the 2010–11 Financial Year | Payroll Tax | July 2010 2 of 7
1(a) Non-grouped employer paying wages in NSW only
Tax rate 1 January 2011 to 30 June 2011 is 5.45 per cent

Monthly – Full Period

Assume your NSW wages for April 2011 are $116 667.

Calculation of threshold for period of employment Note: if employing for less than the full month, use the number of days you
actually employed

No. of days employing x threshold 30 x $658 000 = $54 082

No. of days in period 365

Calculation of employer’s tax payable for the period

Employer’s NSW wages for the period $116 667

Less threshold for the period $ 54 082
Tax on the balance $ 62 585 x 5.45% = $3 410.88

Example Calculations for the 2010–11 Financial Year | Payroll Tax | July 2010 3 of 7
2 Non-grouped employer paying wages in NSW and Interstate
Tax rate 1 July 2010 to 31 December 2010 is 5.5 per cent.

Monthly – Full Period

Assume your December 2010 monthly NSW wages are $116 667
and your total Australian wages are $313 167.

Calculation of threshold for period of employment Note: if employing for less than the full month, use the number of days you
actually employed

No. of days employing x threshold 31 x $658 000 = $55 885

No. of days in period 365

Calculation of threshold for period of employment

NSW wages x threshold $116 667 x $55 885 = $20 819

Employer’s Total Australian wages $313 167
Calculation of employer’s tax payable for the period

Employer’s NSW wages for the period $116 667

Less threshold for the period $ 20 819
Tax on the balance $ 95 848 x 5.5% = $5 271.64

Example Calculations for the 2010–11 Financial Year | Payroll Tax | July 2010 4 of 7
2(a) Non-grouped employer paying wages in NSW and Interstate
Tax rate 1 January 2011 to 30 June 2011 is 5.45 per cent.

Monthly – Full Period

Assume your February 2011 monthly NSW wages are $116 667
and your total Australian wages are $313 167.

Calculation of threshold for period of employment Note: if employing for less than the full month, use the number of days you
actually employed

No. of days employing x threshold 28 x $658 000 = $50 477

No. of days in period 365

Calculation of threshold for period of employment

NSW wages x threshold

$116 667 x $50 477 = $18 805
Employer’s Total Australian wages
$313 167
Calculation of employer’s tax payable for the period

Employer’s NSW wages for the period $116 667

Less threshold for the period $ 18 805
Tax on the balance $ 97 862 x 5.45% = $5 333.47

Example Calculations for the 2010–11 Financial Year | Payroll Tax | July 2010 5 of 7
3 Grouped employer paying as the Designated Group Employer
Tax rate 1 July 2010 to 31 December 2010 is 5.5 per cent.

Monthly – Full Period

Assume all members were grouped for the month of September 2010. Assume your NSW
wages are $56 250, the other group members total NSW wages are $80 000 and the group’s
total Australian wages are $201 000.

Calculation of threshold for period of employment Note: if employing for less than the full month, use the number of days you
actually employed

No. of days employing x threshold 30 x $658 000 = $54 082

No. of days in period 365

Calculation of threshold for period of employment

Total NSW wages of group x threshold $136 250 x $54 082 = $36 660
Total Australian Group wages $201 000
Calculation of employer’s tax payable for the period

Employer’s NSW wages for the period $56 250

Less threshold for the period $36 660
Tax on the balance $19 590 x 5.5% = $1 077.45

Example Calculations for the 2010–11 Financial Year | Payroll Tax | July 2010 6 of 7
3(a) Grouped employer paying as the Designated Group Employer
Tax rate 1 January 2011 to 30 June 2011 is 5.45 per cent.

Monthly – Full Period

Assume all members were grouped for the month of March 2011. Assume your NSW wages
are $56 250, the other group members total NSW wages are $80 000 and the group’s total
Australian wages are $201 000.

Calculation of threshold for period of employment Note: if employing for less than the full month, use the number of days you
actually employed

No. of days employing x threshold 31 x $658 000 = $55 885

No. of days in period 365

Calculation of threshold for period of employment

Total NSW wages of group x threshold $136 250 x $55 885 = $37 882
Total Australian Group wages $201 000
Calculation of employer’s tax payable for the period

Employer’s NSW wages for the period $56 250

Less threshold for the period $37 882
Tax on the balance $18 368 x 5.45% = $1 001.05

Only one member of the group can claim the group’s NSW threshold entitlement.
This member is known as the Designated Group Employer (DGE). Grouped employers are required to nominate a DGE for their group.
If you are not the DGE, you do not receive any threshold entitlement.
If none of the members qualify to be the DGE, you must nominate a single lodger to be responsible for lodging and paying payroll tax on behalf of all members
of the group.

Example Calculations for the 2010–11 Financial Year | Payroll Tax | July 2010 7 of 7