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  • PAYG withholding labels on your activity statement

    Ensure the amounts that have been withheld are reported at the correct label.

    PAYGW labels on your activity statement.

    On this page:

    W1 – Total salary, wages and other payments

    Include at W1 total gross payments from which you are usually required to withhold amounts. These payments include:

    • salary, wages, allowances and leave loading paid to employees
    • director fees
    • salary and allowances paid to office holders (including members of parliament, statutory office holders, defence force members and police officers)
    • payments made by a labour hire firm to labour hire workers under a labour hire arrangement
    • employment termination payments
    • payment for unused annual or long service leave
    • payments to religious practitioners
    • superannuation (super) income stream
    • super lump sum
    • Commonwealth education and training payments.
    • attributed personal services income.

    Include all payments subject to withholding, even if you weren't required to withhold any amount. For example, if you pay an employee $80 a week, and they claim the tax-free threshold, there is generally no obligation to withhold as long as they have previously provided their tax file number, but you still need to report the total payment at W1.

    Do not include:

    • amounts subject to salary sacrifice arrangements
    • super contributions
    • departing Australia superannuation payments
    • payments from which you withheld an amount because an ABN was not quoted (see W4)
    • an investment distribution from which you withheld an amount for non-quotation of a tax file number
    • interest, dividends or royalty payments from which you withheld an amount for a payment to a foreign resident
    • payments to foreign residents for entertainment, sports, construction and casino gaming junket activities.

    If you did not make any payments, leave the boxes blank.

    See also:

    W2 – Amounts withheld from salaries or wages and other payments shown at W1

    Include at W2 the total amount you withheld from salaries, wages and other payments shown at W1. If you didn't withhold any amounts, leave the box blank.

    This is the main type of withholding. If you have no other withholding obligations, go to W5.

    W4 – Amounts withheld where no ABN is quoted

    Where you make payments to suppliers who do not quote their ABN to you, you must withhold 47% (from 1 July 2017) of the invoice amount and pay this to us. Not quoting their ABN means that there was no ABN on the invoice and the supplier did not provide it to you in any other way.

    Include at W4 the total amount you withheld from payments to suppliers who did not quote their ABN to you. If you have nothing to report, leave W4 blank.

    See also:

    W3 – Other amounts withheld (excluding any amount shown at W2 or W4)

    W3 covers other types of withholding. Include the total amount you withheld from:

    • interest, dividends, unit trust or other investment distributions you made, where the person you are paying has not filled in a tax file number (TFN) declaration form or otherwise provided you with a TFN (includes a foreign resident)
    • interest, dividends or royalty payments you made to a foreign resident
    • any departing Australia superannuation payments you made
    • any payments you made to foreign residents, for
      • entertainment and sport activities
      • construction and related activities
      • arranging casino gaming junket activities.
       

    If you have nothing to report, leave W3 blank.

    See also:

    W5 – Total amounts withheld (W2 + W4 + W3)

    Include at W5 the total of W2 + W4 + W3.

    Do not include W1 in your W5 total.

    Copy the total at W5 to 4 in the 'Summary' section of your activity statement. If your activity statement only asks you to report PAYG withholding, you will not have a summary section. Your total withholding will be reported at 9 in the 'Payment or refund' section of your activity statement.

    Next step:

    Large withholders

    You are a large withholder if you either:

    • have withheld amounts totalling more than $1 million in a previous income year
    • are part of a company group which has withheld more than $1 million in a past income year.

    If you are a large withholder, you only need to complete W1 on your activity statement. Do not complete W2, W3, W4, W5 or 4 in the 'Summary' section. Large withholders must pay the amounts they withhold to us electronically.

    If you report through Single Touch Payroll, you no longer have to report amounts at W1 on your activity statements.

    See also:

      Last modified: 24 Apr 2019QC 16735