If you need to withhold amounts from payments to employees, including those who are overseas or foreign residents, you need to get them to complete a Tax file number declaration. In some cases, they may also need to complete a Withholding declaration.
These declarations will help you to work out how much tax to withhold by indicating whether there are other factors you need to consider, such as withholding where employees:
- are under 18 years of age
- have compulsory repayments for study and training support loans, such as Higher Education Loan Program (HELP), Australian Apprenticeship Support Loan (AASL) (previously known as Trade Support Loan) or Financial Supplement debts
- are claiming tax offsets.
You also need to understand how to manage PAYG withholding for employees:
- on leave
- receiving allowances or reimbursements
- receiving back payments, commissions, bonuses and similar payments
- wanting to vary their withholding rate
- who have been overpaid.
If you operate your business as a company or trust with a corporate trustee, and the company or corporate trustee pays you a wage or director's fees, PAYG withholding amounts must be sent to us.
We also have guidance for administrators or liquidators, as well as the trustees of bankrupt estates.