Do I Need to Register for PAYGW?
Source: Australian Taxation Office
If you are required to withhold an amount from a payment, you must be registered for Pay As You Go (PAYG) withholding.
The most common payments you need to withhold amounts from are:
- payments to employees
- payments to directors, and
- payments to a business that doesn’t quote its ABN to you.
Depending on your circumstances, you may also need to withhold amounts from:
- payments to contractors who have a voluntary agreement with you
- payments to individuals under labour hire arrangements, and
- eligible termination payments.
Examples:
• payments of salary, wages, commissions, bonuses or allowances to an individual as an employee (including yourself if you operate your business through a company or trust)
• payments to you as a director
• payments to contractors under a voluntary agreement or labour hire arrangement
• withholding 46.5% from payments to suppliers because they have not quoted their ABN or shown they do not have to quote it.
More Information:
For more information on registration for PAYG withholding, you can access the Tax Office guide titled PAYG Withholding for Small Business.
Ideally, if you have any questions or concerns regarding your PAYG obligations, you should speak with your accountant or advisor.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.