Completing the PAYG withholding labels
To report on PAYG tax withheld, the following labels must be completed:
Note to large withholders
If you're a large withholder, you need to only complete W1 on your business activity statement(BAS). Do not complete W2, W3, W4, W5 or 4 (Summary section).
You're a large withholder if you either:
- withheld amounts totalling more than $1 million in a previous 14 months excluding the last two months, or
- are part of a company group that has withheld more than $1 million in a past 14 months excluding the last two months.
Include at W1 the total gross payments subject to withholding.
- 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 workers under a labour hire arrangement
- employment termination payments
- payments for unused annual or long service leave
- payments to religious practitioners
- super income
- super lump sum
- Commonwealth education and training payments
- payments to contractors under a voluntary agreement.
- amounts subject to salary sacrifice arrangements
- super contributions
- departing Australia super payments (DASP)
- payments from which you withheld an amount from because an ABN was not quoted (for more information, see W4)
- an investment distribution that you withheld an amount from because a TFN hasn't been quoted
- interest, dividends or royalty payments that you withheld an amount from for a payment to a non-resident
- payments to foreign residents for entertainment, sports, construction and casino gaming junket activities.
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, including payments to contractors under a voluntary agreement shown at W1. If you did not withhold any amounts, leave W2 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
When you make payments to suppliers who don't quote their ABN, generally you need to withhold 49% of the invoice amount and pay this to the ATO. Not quoting their ABN means there was no ABN on the invoice and the supplier did not provide it 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.
W3 - Other amounts withheld (excluding any amount shown at W2 or W4)
W3 covers other types of withholding. Include the total amounts, if any, you withheld from any of the following payments:
- interest, dividends, unit trust or other investment distributions you made, where the person you're paying has not completed a Tax file number declaration form or otherwise provided you with a TFN (includes a non-resident)
- interest, dividends or royalty payments you made to a non-resident
- any DASP you made
- any payments you made to foreign residents, for any of the following:
- entertainment and sport activities
- construction and related activities
- arranging casino gaming junket activities.
If you have nothing to report, leave W3 blank.
W5 - Total amounts withheld (W2 + W4 + W3)
Include at W5 the total of W2 + W4 + W3.
Don't include W1 in your W5 total.
Copy the total at W5 to 4 in the Summary section of your BAS.
If your BAS 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 BAS.
4 - PAYG tax withheld (summary section)
Copy the total from W5 to 4 in the Summary section of your BAS.
Lodge your BAS
How to complete, lodge and pay your business activity statement (BAS) or GST/PAYG instalment notice.