Payroll tax is the levy payable by the businesses to the state revenue offices based on the annual Australia national wages threshold stipulated for each state. It is payable either on a monthly or yearly basis. 

PAYG withholding is the income tax applicable to your employees’ wages and salaries, which needs to be deducted from the salaries and wages payment and remitted to the ATO either monthly or quarterly, based on your gross sales turnover.