Withheld tax amounts
If you have withheld tax amounts from payments you make to your payees, you need to:
- provide the withheld amounts to us
- report those amounts to us via Single Touch Payroll (STP)
- finalise your STP reporting in your payroll software for all amounts reported in STP
- provide payment summaries, detailing total payments and withholding, to each of your payees you haven’t reported through STP, and
- lodge an annual report confirming your total withholding you haven’t reported and finalised through STP.
You won't need to do payment summaries nor lodge an annual report for amounts you reported and finalised through STP. For more information, see STP and activity statements.
PAYGW withholding cycles
The pay as you go (PAYG) withholding cycle determines how often you need to report and pay the withholding amounts to us.
Where an employer's annual withholding amount is:
- $25,000 or less (small withholder status) – you are required to notify and pay quarterly
- more than $25,000 and up to $1 million (medium withholder status) – you are required to notify and pay monthly
- more than $1 million (large withholder status) – you are required to pay electronically within 6 to 8 days of a withholding event taking place, such as when staff are paid.