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  • PAYG withholding

    as an employer, you have a role to play in helping your payees meet their end-of-year tax liabilities. you do this by collecting pay as you go (payg) withholding amounts from payments you make to:

    • your employees
    • other workers, such as contractors, that you have voluntary agreements with
    • businesses that don't quote their Australian business number (ABN).

    a few things to remember:

    • You must register for PAYG withholding before you are first required to withhold an amount from a payment.
    • If you cease to be an employer you should cancel your PAYG withholding registration.
    • Before you enter into a work agreement or contract, you need to check that the worker is legally allowed to work in Australia.
    • PAYG withholding is different to payroll tax. Payroll tax is a state tax.

    it’s important you keep the right records.

    Find out about:

    Next step:

    See also:

    Last modified: 30 Apr 2019QC 27057
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