Guide to pay as you go (PAYG) withholding

Payments to labour hire workers

If you are a labour hire firm providing individual workers (as employees or contractors) under a labour hire arrangement, your workers are taxed at the same rate as employees. You work out how much to withhold using the relevant PAYG withholding tax table, together with information provided on your workers' tax file number and withholding declarations.

Where you provide labour hire workers who are operating as companies, partnerships or trusts, you do not have to withhold amounts from payments you make to them, unless they don't provide you with their ABN.

For more information, refer to PAYG withholding and labour hire firms.

Pay as you go (PAYG) withholding - home

Sections within Withholding amounts from wages and other payments

• Employee or contractor
• Payments to employees
• Payments with special rules
• Payments to building and construction industry contractors
• Payments to contractors under a voluntary agreement
• Payments to labour hire workers
• When a business doesn't quote its ABN