Pay as you go withholding - what you need to know

How to obtain copies of this publication

This publication can be downloaded in Portable Document Format (PDF).

Download Pay as you go withholding - what you need to know (NAT 5195) (PDF, 185kB).

To order a printed copy:

• use our online publications ordering service
• phone our publications distribution service on 1300 720 092.

Getting the help you need

As an employer, you have certain tax and super obligations you need to be aware of.

These obligations include:

• pay as you go (PAYG) withholding
• super
• fringe benefits tax (FBT).

Running a business or a non-profit organisation gets more complex when you have employees or independent contractors. When you make payments to employees or contractors, you may be required to withhold an amount and send it to us at regular intervals. We call this process PAYG withholding.

To make it easier for you to meet your PAYG withholding obligations, we offer a range of products and services, see More information.

To comply with your PAYG withholding obligations you need to:

• register for PAYG withholding
• work out the status of your workers
• become familiar with the types of payments you need to withhold from
• work out the amount to withhold
• report and pay withheld amounts to us
• provide payment summaries and lodge an annual report at the end of each income year.

Under the PAYG withholding system:

• the business, non-profit organisation or individual making the payments is called the payer, and
• the individual being paid is called the payee.

Last Modified: Wednesday, 13 May 2009