If you have employees, you are required to withhold tax from their wage or salary payments. In some circumstances you may have to withhold tax from payments to other workers, such as contract workers.
Pay As You Go (PAYG) withholding involves withholding amounts for income tax purposes. You must register with the Australian Taxation Office (ATO) before you withhold amounts from payments to your employees.
If other businesses don’t quote their ABN to you on an invoice or other document, you may also need to withhold an amount from any payment made.
You need to send all withheld amounts to the ATO.
What to do...
- Visit the ATO website to:
- To register for PAYG withholding:
- use the same form that the you use when you apply for an ABN
- phone 13 28 66 (you will need to have your ABN or tax file number to register over the phone)
- phone 1300 720 092 to request a copy of the Add a new business account form to complete.
