PAYG Compliance

Pay As You Go (PAYG)

PAYG is a legal requirement to hold the amout for income tax purposes. You must register with the ATO before you can withhold any part payments for PAYG purposes (or where an ABN has not been quoted). Registration with the ATO can be done either by submitting a form (paper or electronically), or calling the ATO.

New Employee

If you have a new employee, you as an employer must receive their TFN declaration form within 28 days of the employee starting work. If the declaration has still not been received, you must take 46.5% out of the employee’s earnings for tax withholding. Once the declaration is received, you must send the original declaration to the ATO within 14 days, and keep a second copy for your record.

When to Report

Reporting is done via your activity statement – this includes both amounts withheld from employees, as well as those from businesses where an ABN was not quoted.


When it comes to termination payments, you need only report them if the sum paid is in cash, and greater than $5000.

Click Tax Rates Table