Understand your additional obligations
Any additional PAYGW obligations depend on your business.
Companies and trusts
- Normal PAYG withholding obligations for salary or wages promptly paid to each individual who produced the PSI
- Additional PAYG withholding obligations for amounts attributed to each individual who produced PSI which has not been promptly paid as salary or wages.
- Normal PAYG withholding on salary or wages does not apply because partnerships can't pay salary or wages to partners.
- You have additional PAYG withholding obligations for amounts attributed to the partner who produced the PSI.
These additional PAYG withholding obligations will continue for the attributed income until your circumstances change and the PSI rules no longer apply.
For example, if your business worked out last income year that the PSI rules applied, then your business would have additional PAYG withholding obligations for the attributed income in the current financial year unless:
- all PSI is promptly paid out as salary or wages and appropriate PAYG amounts are withheld from the payments
- you worked out the PSI rules didn't apply
- you received a personal services business determination from us stating the PSI rules didn't apply in relation to the PSI of a particular individual.
For a new business (that is, one that has not previously received PSI), the additional obligation arises where your business must attribute income in the current income year.
If the business does not expect to pass the results test and 80% or more of the PSI of a particular individual comes from one client:
End of attention
- the PSI rules are considered to apply to the PSI of that individual for the purposes of this withholding
- the business will have additional PAYG withholding obligations to meet.