Print this page
Print entire document
This is available to download in Portable Document Format (PDF) format: PAYG withholding (NAT 8075, 700KB).
This guide will help you meet your pay as you go (PAYG) withholding obligations if you:
This guide does not cover withholding from:
If you need more information about withholding from these types of payments, refer to:
When we say:
Some technical terms in this guide may be new to you. These are shown in bold when first used, and are explained in the list of definitions.
If you have employees or pay employees of another business, you must withhold an amount from payments you make to them. If you operate your business as a company, you also need to withhold amounts from payments to company directors, for their services, this also includes payments to other workers such as contractors.
You must also withhold an amount from payments you make to other businesses if they don't quote their ABN to you on an invoice or other document if required.
You report and send all amounts you have withheld under PAYG withholding - this is called 'withholding'.
Under PAYG withholding:
If you need more information, refer to PAYG withholding - what you need to know (NAT 5195).
Under super law, you must pay super contributions to the correct super fund by the cut-off dates for all your eligible employees. You may also have to offer a choice of super fund to your eligible employees including individual contractors.
You must pass on your employees' tax file numbers (TFN), provided in their Tax file number declaration (NAT 3092), to their super funds.
If you need more information about your superannuation obligations:
If you provide a fringe benefit to an employee or their associate, such as their family member, you may be liable for fringe benefits tax (FBT). Basically, a fringe benefit is a benefit provided to an employee (or their associate). Benefits include rights, privileges or services. For example, you provide a fringe benefit when you allow an employee to use a work car for private purposes or pay an employee's private health insurance costs.
If you need more information on fringe benefits tax, refer to Fringe benefits tax - what you need to know (NAT 1744).
All Australian States and Territories have a payroll tax, which is calculated on wages paid or payable by employers. For payroll tax purposes wages includes salaries, allowances, director's fees, superannuation and the 'grossed-up' value of fringe benefits.
Employers are required to self-assess their liability on a monthly basis, with an annual adjustment reconciliation performed at the end of the financial year.
To see if you are liable for payroll tax you should check your local Revenue Office website to see if you need to register.
The Australian Taxation Office (ATO) and the State and Territory Revenue Offices exchange wage-related and other information to assist in the proper identification and accurate assessment of taxation liabilities.
For more information about payroll tax contact the Revenue Office where you employ:
Australian Capital Territory
02 6207 0088
New South Wales
1300 139 815
1300 305 353
1300 300 734
08 8204 9880
03 6233 2813
13 21 61
1300 368 364
If you have employees or other workers, or you make payments to other businesses that don't quote their ABN to you, you must:
System maintenance and issuesAccess managerAbout online services
More forms and instructions
More tax rates and codes
More calculators and tools
Legal Database Arrow button