Guide to activity statements

Pay as you go (PAYG) tax withheld

Under PAYG withholding, payers (generally businesses and other enterprises) must withhold amounts from certain payments made to others. These payments include:

• payments to employees, company directors and office holders
• payments to workers under a labour hire agreements
• payments under voluntary agreements
• payments where an Australian business number (ABN) has not been quoted in relation to a supply.

You report these withheld amounts on your activity statement and all withheld amounts are sent to us.

For more information, refer to PAYG withholding - how to complete your activity statement (NAT 7394).

Completing the PAYG withholding labels

To complete this section of your activity statement, refer to the following labels:

• W1 - Total salary, wages and other payments
• W2 - Amounts withheld from salaries or wages and other payments shown at W1
• W3 - Other amounts withheld (excluding any amount shown at W2 or W4)
• W4 - Amounts withheld where no ABN is quoted
• W5 - Total amounts withheld (W2 + W4 + W3)
• 4 - PAYG tax withheld (summary section).

For more information, refer to PAYG withholding - how to complete your activity statement (NAT 7394).

Activity statements - home

Sections within Pay as you go (PAYG) tax withheld

• Completing the PAYG withholding labels