PAYG withholding - repayment of overpaid amounts

You can download a printable version of PAYG withholding - repayment of overpaid amounts (NAT 5173, 85KB) in Portable Document Format (PDF).

Introduction

If you overpay an employee (or other payee), you must decide if the payee is required to repay the overpaid amount.

If you decide that the employee is not obliged to repay the overpaid amount, you do not need to do anything. If you are a state or Australian government department or agency, legislation may mean your employee must repay the overpaid amount.

The following instructions explain what to do if you have decided that the employee must repay the overpaid amount:

• the overpayment is identified in a later financial year than the payment year and the employee repays the amount over time
• the overpayment is identified in the same financial year as it was paid and the employee repays an amount either within that financial year or within a subsequent financial year.

If the employee is obliged to repay the overpaid amount, fringe benefits tax (FBT) may apply if you: allow the employee time to repay the overpaid amount waive the employee's obligation to repay the overpaid amount. Refer to the FBT publications listed under More information.