Payments you need to withhold from

As an employer, you may need to withhold amounts from payments you make to your workers and other businesses and send the withheld amount to us.

The most common payments you withhold amounts from are those to:

  • your employees
  • your directors
  • businesses that don't quote their ABN to you
  • contractors who have a voluntary agreement with you.

If you operate your business as a sole trader or partnership and you draw amounts from the business, this is not a wage and you don't have to withhold from these drawings. You make some provision for your income tax liability through PAYG instalments.

Next steps:

See also:

Last modified: 17 Jun 2015QC 27059