Completing the withholding section of your activity statement
As a large withholder, you will receive an activity statement each month or each quarter, depending on your GST reporting cycle. If you are not registered for GST, you will receive an activity statement each quarter.
You should only complete label W1 – 'Total of salary, wages and other payments' in the withholding section of the activity statement. Do not report other amounts you withheld at any other label - these other amounts must be reported through the electronic payment process.
Other amounts you can include at W1 are:
- directors fees
- payments made by a labour hire firm to labour hire workers
- salary and allowances paid to office holders.
Do not include:
- super contributions
- interest, dividend and royalty payments
- payments to foreign residents for entertainment, sports, construction and casino gaming junket activities.
If more than one member of a group pays withholding amounts for salary, wages and other payments, each member must complete label W1 – 'Total of salary, wages and other payments' in the withholding section of their activity statement.
Large Ltd is a large withholder and is also registered for GST as a monthly payer.
In November, the company makes the following payments:
- Wednesday 7 November
Paid salary and wages of $3 million, plus directors' fees of $20,000, withheld total of $900,000.
- Thursday 8 November
Paid an invoice for $10,000, withheld $4,900 because no ABN had been quoted.
- Friday 9 November
Paid two unfranked dividends as follows
- withheld $24,500 from dividend amount of $50,000 to a resident investor who had not quoted a TFN
- withheld $1,500 from a dividend amount of $10,000 paid to a non-resident.
In total, Large Ltd withheld $930,900 over these three days. Based on When to pay withheld amounts table Large Ltd must report and pay this amount to us electronically by Thursday 15 November.
In its November activity statement, Large Ltd will include the following amounts at W1 – Total of salary, wages and other payments:
- $3,020,000 relating to the three days
- any other similar payments made during the month.
Large Ltd does not report the tax withheld from the amount shown at W1 on the activity statement. They also do not report on the activity statements the withholding related to the dividend payment or the payment where no ABN was quoted.
End of example
Diagram: Timeline illustrating dates withheld and deadlines for lodging and payment from example above