PAYG
On 1 July 2000, the PAYG withholding system replaced the 9 previous withholding systems. The PAYG withholding regime has implemented new administrative procedures that employers must satisfy when employing, paying and terminating the services of an employee.
- Tax File Number (TFN) Declaration - should be completed by all employees.
- Withholding Declaration - to be completed by employees who want the amount of tax withheld by an employer adjusted to take into account certain tax offsets.
- HECS - employers who have employees with an accumulated HECS debt will be required to withhold additional PAYG tax from an employee's pay.
A copy of the PAYG Withholding Tax Tables is available online.
From 1 July 2000 new employees must give employers a completed TFN Declaration. If they don't, employers must withhold tax from their wage or salary at the top marginal rate. Employers must send completed TFN Declarations to the ATO within 14 days of employing a new person.
New employees must give employers a Withholding Declaration if they want to 'anticipate' their entitlement to the Family Tax Benefit, zone, dependent spouse and other special rebates by reducing the amount withheld from their pay. Employees must also give employers a Withholding Declaration if they wish to advise of a HECS debt or Financial Supplement debt.
For more information please contact us