Starting a Business
13. PAYG Withholding Tax
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 24 Sep 2015
- If you intend to employ people and will be paying wages you will need to deduct tax from each employee wage payment.
- This is referred to as Pay As You Go (PAYG) withholding.
- This is not the same as the PAYG procedures that form part of your Business Activity Statement (BAS).
- To do this you need to:
- register for PAYG with the Australian Taxation Office (ATO);
- calculate how much to withhold depending on annual income of that employee;
- pay the withheld amount to the tax office; and
- record these amounts in your BAS.
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