Payroll Tax Lawyers

Payroll tax can affect the way a business engages workers, structures operations, and manages compliance, with significant consequences if liabilities are not identified and addressed properly.

We help:

Understand how payroll tax applies to your workforce, business structure, and arrangements
Identify payroll tax risks, exemptions, grouping issues, or assessment concerns early
Move forward with greater clarity around compliance, exposure, and next steps

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4.9

89 Google Reviews

Award Winning Law Firm – Top Specialist Firm & Top Boutique Firm (Australasian Lawyer)

First class advice, service, and communication. I have had the pleasure of working with Velocity Legal for many years across a range of challenging matters and they never fail to impress.

Grant F

Their meticulous attention to detail, unwavering professionalism and strategic approach have delivered an outstanding result. Their level of service is nothing short of impressive.

Jack C

From the initial consultation to the final resolution, they provided exceptional
service and achieved an outstanding result for our case.

Wan Li

We are an accounting firm that works closely with Velocity Legal on all our client's legal matters… Every client who works with their team is delighted and impressed by the clear advice, efficient communication, and seamless process.

Selina L

I highly recommend the team at Velocity Legal. They are extremely knowledgeable, professional, have an eye for detail and their work ethic is second to none.

Mark P

They provided so much support and guidance through the process and I felt like they genuinely cared about getting the right outcome for me. They obviously know their stuff but were able to explain things in a simple and clear way.

Natalie F

Approachable, honest, professional and transparent. An absolute pleasure to work with.

Bob W

4.9

89 Google Reviews

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We Understand What You Are Going Through

Payroll tax issues often arise when a business is already managing important operational, workforce, and financial decisions. You may be trying to understand whether payroll tax applies to certain arrangements, whether contractor or grouping rules are affecting your position, or how to respond to an assessment or audit.

These issues can be difficult to navigate, particularly where the rules are technical and the financial consequences are significant. It is not always clear how a revenue authority has approached the issue or what options may be available in response.

We understand that payroll tax issues often involve both legal and commercial considerations. We help you work through them in a calm and practical way, so you can move forward with greater clarity and confidence.

Our Services Include

Advising on how payroll tax applies to workforce and business arrangements
Reviewing payroll tax assessments, liabilities, exemptions, and compliance positions
Advising on grouping, contractor, and employment-related payroll tax issues
Assisting with objections, reassessments, audits, and disputes involving payroll tax
Advising on payroll tax implications as part of broader structuring or operational decisions
Supporting communication with the relevant revenue authority where required

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Our Difference

Accountability & Expertise

Every matter we handle comes with full accountability. You’ll deal directly with an expert – every time, no exceptions.

In Your Shoes

Understanding your unique circumstances and goals - so our advice is practical, personal, and never given in a vacuum.

Transparency & Communication

We speak your language. That means plain, clear advice - what’s happening, why it matters, and what comes next.

50+

Australian Based Team

4,000+

Matters Expertly Handled

10+

Awards & Industry Recognition

Our Process

Book Meeting
Fill in the contact form below or call our office to book an initial consult. You can choose between an in-person or video conference.
Get Advice 
You’ll discuss your situation in depth with a senior lawyer. This includes exploring your requirements, goals, and desired outcomes. You’ll walk away from this meeting with a clear understanding of the next steps.
Achieve Outcomes 
Our legal team will work tirelessly to achieve your desired objectives. We work hard, communicate regularly, and pride ourselves on delivering results.

Book a Consult

Take the First Step Today

You don’t have to figure this out alone. Book an initial consult with our expert legal team and get clear answers about your situation.

Transparent quotes (no ‘bill shock’)
Rapid response
Award winning team

Andrew Henshaw

Managing Director

Award Winning Law Firm – Top Specialist Firm & Top Boutique Firm (Australasian Lawyer)

Our Directors

Managing Director

Andrew Henshaw

Director

Demian Walton

Director

Jennifer Maher

Director

Jess Hill

Director

Rajan Verma

Director

Robert Osler

Director

Seamus Ryan

Director

Tori Kilby

Director

Greg Thomas

Payroll Tax: Looking Beyond the Payroll Report

A payroll report can look tidy even when the payroll tax position has not been properly tested. The issue often sits outside ordinary salaries: contractors, service entities, interstate wages, employment agency arrangements, bonuses, allowances, superannuation or benefits that have not been reviewed together.

A payroll tax lawyer can help business owners, finance teams and advisers check whether the workforce in practice matches the way payments have been reported, before a review, reassessment or audit becomes harder to manage.

Start with the workforce, not the report

A useful payroll tax review starts with how people are actually engaged and paid. The question is not only who appears in payroll software. It is which entity pays them, who controls the work, what services are being provided, and whether payments outside ordinary wages have been captured.

Before deciding whether registration, correction or further review is needed, businesses should usually check:

Whether the business should be registered for payroll tax;
Which payments have been treated as taxable wages;
Whether bonuses, allowances, superannuation or fringe benefits have been included correctly;
Whether contractor payments may be treated as wages;
Whether any payroll tax exemption or contractor exclusion has been relied on and documented;
Whether employment agency contracts or labour hire arrangements are involved;
Whether interstate wages affect threshold calculations;
Whether related entities create payroll tax grouping issues.

Good payroll tax advice should test the business model against the records, not just the labels used in invoices, contracts or accounting systems.

Contractors and agency arrangements are common pressure points

Contractor payroll tax issues often arise because a business assumes that an independent contractor label settles the position. It does not. The contract, invoicing pattern, services performed, use of personal labour, working arrangements and any claimed exemptions may all matter.

The same caution applies to labour hire and agency models. A business may see itself as supplying services, while the revenue authority may focus on whether workers are being procured for a client. That can affect which payments are counted and whether any exemption is available.

For businesses using consultants, medical or allied health practitioners, labour hire, management entities or professional service companies, the documents should be reviewed before an audit letter arrives.

Grouping can change the threshold position

A structure that makes commercial sense can still create payroll tax exposure. Related companies, common control, shared employees, service entities, trusts or businesses operating across state borders can affect how wages are grouped and which threshold applies.

This is where surprises often arise. Two entities may have separate ABNs, bank accounts and payroll systems, but still need to be considered together for payroll tax purposes. If the business has acquired another business, restructured its workforce or moved employees between entities, the grouping position should be checked before the next annual reconciliation or revenue authority enquiry.

If an audit, assessment or enquiry arrives

A payroll tax audit, payroll tax assessment or enquiry from the State Revenue Office or Revenue NSW should not be answered by sending a data dump. The response should explain the classification of payments and be supported by contracts, invoices, payroll reports, financial statements, superannuation records, group structure charts and working papers.

Some matters can be resolved through explanation, correction or voluntary disclosure. Others may require a reassessment request, settlement discussion or formal payroll tax objection. The best pathway depends on the issue, the evidence, the amount at stake and whether the authority’s position is supported by the facts.

How Velocity Legal can help

Velocity Legal’s tax lawyers assist business owners, employers, advisers and finance teams with SRO payroll tax matters, including registration, taxable wages, workforce arrangements, contractor arrangements, grouping, exemptions, assessments, audits, objections and dealings with the State Revenue Office or Revenue NSW.

If you are reviewing payroll tax compliance, responding to an enquiry, or concerned about wage liabilities, contact Velocity Legal before filing a response, accepting an assessment or making changes that may affect your position. Read Less

Frequently Asked Questions

What is payroll tax?

Payroll tax is a state-based tax that may apply where wages or other relevant payments exceed the applicable threshold. Whether it applies depends on the relevant rules, the business structure, and how workers are engaged.

Why can payroll tax become complicated?

Payroll tax issues can become complex where there are contractor arrangements, multiple related entities, grouping rules, or uncertainty about how payments are characterised. Technical rules can significantly affect both liability and compliance obligations.

Can payroll tax assessments be challenged?

In some circumstances, payroll tax assessments can be reviewed, objected to, or reassessed. Understanding how the assessment was reached and what options are available is an important first step in deciding how to respond.

How do grouping rules affect payroll tax?

Grouping rules can result in multiple entities being treated together for payroll tax purposes, which may affect thresholds and liability. Whether grouping applies will depend on the structure, relationships, and degree of common control involved.

When should legal advice be obtained about land tax?

It is often helpful to obtain legal advice when acquiring property, reviewing ownership structures, responding to an assessment, or considering whether an exemption or objection may apply. Early advice can help clarify risk and support better decision making.

Take the First
Step Today

You don’t have to figure this out alone. Book an initial consult with our expert legal team and get clear answers about your situation.

Transparent quotes (no ‘bill shock’)
Rapid response
Award winning team

Book Consult

4.9

89 Google Reviews

Award Winning Law Firm – Top Specialist Firm & Top Boutique Firm (Australasian Lawyer)