Pay as you go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes.
If you have employees, you are 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You may also need to withhold an amount from payments to other businesses if they do not quote their Australian business number (ABN) to you on an invoice or other document if required.
You must send all withheld amounts to the Australian Tax Office (ATO).
As a new employer, you must register with the ATO before you withhold tax from payments to your employees.
Register for PAYG withholding
There are three ways to register for PAYG withholding:
- Register onlinevia the Australian Business Register website.
- Telephone the ATO on 1300 720 092 to request a copy of the form to complete to add a new business account.
- Call 13 28 66 to register over the phone - have your ABN or tax file number ready.
More information
Other websites
Online tax withheld calculator - Australian Taxation Office
Tax withheld calculator (TWC) guide - Australian Taxation Office
PAYG withholding essentials - Australian Taxation Office