PAYG withholding is a legal requirement to withhold amounts for income tax purposes.
If you have employees, you’re required to withhold tax from payments you make to them. You may have to withhold tax from payments to other workers, such as contract workers.
You may also need to withhold an amount from payments to other businesses if they don’t quote their ABN to you on an invoice or other document if required.
You must send all withheld amounts to the Tax Office.
As a new employer, you must register with the Tax Office before you withhold from payments to your employees.
What to do...
To register:
- Apply for an ABN online, or
- phone 1300 720 092 to request a copy of the Add a new business account form to complete, or
- phone 13 28 66 (you will need to have your ABN or tax file number to register over the phone).
