Tax Facts - PAYG Withholding

Pay as you go (PAYG) withholding is a system for withholding amounts from payments to employees, other individuals and businesses. An entity will have withholding obligations if the entity:

  • Has employees, including company directors and officeholders
  • Has other workers such as contractors, and voluntarily agrees to withhold tax from payments to them
  • Makes payments to other businesses, if they don't quote an Australian business number (ABN) to the entity, or
  • Makes certain other payments that are subject to withholding.

If you are an employer or run a business and withhold amounts from payments, you need to:

  • Register for PAYG withholding
  • Register as an employer of working holiday makers (417 or 462 visa's) if applicable.
  • Withhold amounts from wages and other payments
  • Lodge activity statements and pay the withheld amounts to the Australian Taxation Office (ATO)
  • Provide payment summaries to employees and other payees, and
  • Provide the ATO with an annual report once each income year has ended.

Payment summaries and annual reports are not required in relation to amounts reported using single touch payroll.

Taxation Services

At Gibson & Partners we offer a full range of taxation services. We offer advice based on proven knowledge and experience.

FIND OUT MORE

Self-Managed Superannuation

Superannuation law is an intricate area and the team at Gibson & Partners are experts with regard to the tax aspects of superannuation and can assist with the management of your superannuation fund.

FIND OUT MORE

Succession Planning

To ensure the long-term success of your business, it is critical to establish a well-designed succession plan. Coordinating the transition of your business to your successors can be an arduous process.

FIND OUT MORE