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Registering for PAYG withholding |
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This fact sheet discusses under what circumstances an entity may be required to register for PAYG withholding.
If you make payments from which withholding is required - for example, wages to employees or payments to businesses that do not quote an Australian business number (ABN) - you must register with the Tax Office before you first withhold.
You can register for pay as you go (PAYG) withholding by either completing a form (which can be sent to the Tax Office in paper or electronic form) or by contacting the Tax Office. If you are applying for an ABN, you can use the same form to register for PAYG withholding.
Do I need to withhold?
Under PAYG withholding, businesses and other enterprises must deduct amounts from certain payments they make to others, including:
- payments to employees, company directors and office holders
- payments under labour hire arrangements
- payments under voluntary agreements, and
- payments where an ABN has not been quoted.
People who are not in business may need to withhold in specific circumstances, such as withholding from wages to domestic staff, or a landlord withholding from a payment to a tradesperson who has not quoted an ABN.
Do I need to register for PAYG withholding?
You must apply to register by the day on which you are first required to withhold an amount from a payment.
If you were registered as a group employer under the PAYE system as at 30 June 2000, and you had applied for an ABN, you don't need to register for PAYG withholding. Your existing registration has been automatically carried over to the new system.
How do I register for PAYG withholding?
If you already have an ABN
Register by phoning the Business Tax Reform Infoline on 13 28 66 or completing an Add a new business account form.
If you don't have an ABN but need to obtain one
If you're in business you need an ABN. You can apply for an ABN and register for PAYG withholding at the same time.
You can register electronically through the Business Entry Point at www.business.gov.au or the electronic lodgment system (ELS) with your tax agent. Alternatively, you can complete an application forms
If you don't need an ABN
You will still need to register for PAYG withholding. Register by phoning 13 28 66 or completing the Add a PAYG withholding account form.
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Last Modified: Wednesday, 27 May 2009
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