Wages includes any remuneration paid or payable by an employer to an employee such as salary, commission, bonuses or allowances and any ordinary earnings, penalty rates, overtime and leave payments. This includes wages paid or payable, in cash or in kind at piecework rates or otherwise. Payments made to certain contractors may also be deemed to be wages.
What wages are liable?
Liable wages include
What payments are not liable for payroll tax?
Any payments made under the Commonwealth Paid Parental Leave Scheme to eligible employees are not liable for NSW payroll tax.
The following are not liable for payroll tax unless additional payments are made to an employee by their employer:
What wages are exempt?
Under certain circumstances, wages paid or payable to Aboriginal persons, defence force personnel and emergency operations staff are exempt.
Wages paid or payable to an employee for the time specified under the relevant legislation in respect of maternity, paternity or adoption leave are also exempt.