What is PAYG?

PAYG stands for Pay-As-You-Go Tax Withholding.

Being PAYG registered allows you to withhold funds from a payment to meet tax obligations.

If your company intends to employ staff and/or pay directors and shareholders a wage/salary, it must be PAYG registered.

The ATO will advise how often it requires PAYG payments to be made; this is usually monthly or quarterly.

The estimated amount that you expect to withhold is generally an indication of the reporting frequency:

• $25 000 or less = quarterly
• $25 001 up to and including $1 000 000 = monthly
• More than $1 000 000 = increased frequency

How do I register?

You can elect to register for PAYG as part of your ABN application with EasyCompanies, at no extra cost.

The ATO will then post your PAYG registration details to your registered office address.

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Updated — Mar 13, 2019