Disclaimer: Payroll estimates only; confirm PAYG, super eligibility, ordinary time earnings and other employment costs with the ATO or a payroll professional.
Enter employee gross pay, PAYG withholding and employer on-costs to estimate the total cost of an Australian pay run. This Payroll Calculator Australia displays gross wages, net wages, super and annualised employer payroll cost for multiple identical employees.
What Is a Payroll Calculator Australia?
A Payroll Calculator Australia is a planning tool for estimating the combined cost of a weekly, fortnightly or monthly employee pay run. It multiplies per-employee gross pay and PAYG withholding by the number of identical employees entered.
The calculator also estimates employer superannuation, additional payroll on-costs and fixed costs. These figures are combined to show the total employer cash cost for one pay run and the annualised payroll cost.
This calculator does not independently calculate PAYG withholding from an employee’s tax declaration. The employer must enter the PAYG amount applicable to one employee for the selected pay run.
Employees wanting a personal salary estimate can use the Simple Salary Calculator. The Australian Salary Calculator provides a separate salary and take-home pay estimate rather than calculating the employer’s complete payroll cost.
How to Use the Payroll Calculator Australia
Step 1: Enter gross pay per employee
Enter the gross amount paid to one employee in one pay run. The visible placeholder is A$2,760.
Gross pay is the amount before PAYG withholding is removed. All employees included in one calculation must have the same entered gross pay and other assumptions.
Step 2: Select the pay-run frequency
Choose weekly, fortnightly or monthly. The default selection is fortnightly.
The selected frequency determines how the per-run employer cost is annualised:
- Weekly: 52 pay runs
- Fortnightly: 26 pay runs
- Monthly: 12 pay runs
Step 3: Enter the number of identical employees
Enter a whole number from 1 to 100,000. The placeholder is 11 employees.
If employees have different gross pay or PAYG amounts, calculate each group separately and combine the results outside the tool.
The Income Calculator Australia can help convert gross income frequencies before preparing a payroll scenario.
Step 4: Enter PAYG withheld per employee
Enter the PAYG amount withheld from one employee during the pay run. The visible placeholder is A$618.
The amount must be zero or greater and cannot exceed gross pay. This is an input, not an amount automatically calculated by the tool.
Employers can use the official ATO schedules or ATO Tax Withheld Calculator to determine an appropriate withholding amount before entering it here.
Step 5: Choose employer super treatment
The default option includes 12% employer super. You can alternatively exclude employer super from the estimate.
The calculator applies the selected percentage to total gross wages. It does not assess whether every component of gross pay is ordinary time earnings or whether an employee is eligible for super.
Step 6: Enter other employer on-costs
Enter the combined percentage used to estimate additional employer expenses. The placeholder is 6.85%.
On-costs may represent items such as workers compensation, leave provisions, payroll tax or other employment-related expenses. The appropriate rate depends on the employer and should not be assumed from the placeholder.
Step 7: Enter fixed payroll costs
Enter any fixed cost that applies once to the complete pay run. The placeholder is A$214.
Do not multiply this amount by the number of employees. The calculator adds it once after calculating wages, super and percentage-based on-costs.
Step 8: Press Calculate
The calculator displays total gross wages, total PAYG withheld, net wages, employer super, other on-costs, total employer cash cost and annualised payroll cost.
The Software Salary Tool offers a separate salary-planning option, while a dedicated payroll system may be required for actual payroll processing and reporting.
How Is Australian Payroll Cost Calculated?
Total gross wages are:
Total gross wages = Gross pay per employee × Number of employees
Total PAYG withheld is:
Total PAYG = PAYG per employee × Number of employees
Net wages paid to employees are:
Net wages = Total gross wages − Total PAYG withheld
The entered PAYG is deducted from employee payments, but it is not added again to employer cash cost. Gross wages already include the amount divided between net wages and PAYG withholding.
Employer super is:
Employer super = Total gross wages × Selected super rate
Other on-costs are:
Other payroll on-costs = Total gross wages × On-cost rate
The complete employer cost for one pay run is:
Employer cash cost = Gross wages + Employer super + Other on-costs + Fixed costs
The annualised result is:
Annual payroll cost = Employer cash cost × Pay runs per year
The Salary Budget Calculator is more suitable for personal budgeting. This calculator estimates an employer’s payroll cost rather than an employee’s household budget.
Australian Payroll Calculation Example
This example uses every visible placeholder and the calculator’s default selections:
- Gross pay per employee: A$2,760
- Pay-run frequency: Fortnightly
- Number of employees: 11
- PAYG per employee: A$618
- Employer super treatment: Include 12%
- Other employer on-cost rate: 6.85%
- Fixed payroll costs per run: A$214
Total gross wages are:
A$2,760 × 11 = A$30,360.00
Total PAYG withheld is:
A$618 × 11 = A$6,798.00
Net wages paid are:
A$30,360 − A$6,798 = A$23,562.00
Employer super is:
A$30,360 × 12% = A$3,643.20
Other payroll on-costs are:
A$30,360 × 6.85% = A$2,079.66
The total employer cash cost for the pay run is:
A$30,360 + A$3,643.20 + A$2,079.66 + A$214 = A$36,296.86
Because fortnightly is selected, the calculator annualises the result across 26 pay runs:
A$36,296.86 × 26 = A$943,718.36
The displayed results are:
- Total employer cash cost per pay run: A$36,296.86
- Total gross wages: A$30,360.00
- Total PAYG withheld: A$6,798.00
- Net wages paid: A$23,562.00
- Employer super: A$3,643.20
- Other payroll on-costs: A$2,079.66
- Annualised employer payroll cost: A$943,718.36
These values exactly match the calculator code for the placeholder example.
The Contractor Pay Calculator Australia can help compare contractor revenue with employee payroll, although contractor and employee arrangements have different obligations.
PAYG Withholding vs Net Wages
PAYG withholding is the amount retained from an employee’s gross pay and generally paid to the ATO. Net wages are what remains for payment to the employee after the entered PAYG amount is subtracted.
This calculator does not adjust withholding for tax-free threshold declarations, HELP debts, tax offsets, residency status or other payroll information. Those details must be considered when determining the PAYG input.
The Take Home Pay Calculator estimates personal take-home pay. The Tax Refund Estimate Calculator compares annual withholding with estimated tax liability, while the Tax Return Calculator serves a separate end-of-year purpose.
What Is Included in Employer Payroll Cost?
The calculator includes gross wages, selected employer super, percentage-based on-costs and fixed per-run costs.
It does not independently calculate:
- PAYG withholding
- Payroll tax thresholds or state-specific liability
- Workers compensation premiums
- Leave balances or leave loading
- Overtime and penalty rates
- Allowances and bonuses
- Super eligibility or ordinary time earnings
- Single Touch Payroll reporting
- Employment awards or agreements
Salary sacrifice can change taxable pay and payroll processing. The Salary Sacrifice Calculator estimates a general sacrifice scenario, and the Car Salary Sacrifice Calculator focuses on packaged vehicles.
Employers should replace the placeholder on-cost percentage with a rate based on their actual obligations. The calculator does not determine whether payroll tax, insurance or another cost applies.
Frequently Asked Questions
Q1: Does the calculator determine PAYG withholding?
A: No. Enter the PAYG amount already determined for one employee and one pay run.
Q2: Can I calculate weekly, fortnightly and monthly payroll?
A: Yes. Select the relevant pay-run frequency before calculating.
Q3: Can employees have different pay amounts?
A: One calculation assumes identical employees. Run separate calculations for groups with different pay details.
Q4: Is PAYG added to employer cost?
A: No. PAYG is already part of gross wages and is separated from the net amount paid to employees.
Q5: Does the calculator include employer super?
A: Yes. The default option applies 12% to total gross wages, or you can exclude it.
Q6: What are other payroll on-costs?
A: They are an entered percentage for additional employer expenses that may apply beyond wages and super.
Q7: Are fixed costs applied per employee?
A: No. The fixed amount is added once to the complete pay run.
Q8: Does it calculate payroll tax?
A: No. You may incorporate an estimated amount in the on-cost rate, but the tool does not assess state payroll-tax rules.
Q9: Can this calculator process or lodge payroll?
A: No. It provides planning estimates and does not process payments, report payroll or lodge information.