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Conduct the appropriate research and explain the ATO’s requirements in relation to pay as you go...

Conduct the appropriate research and explain the ATO’s requirements in relation to pay as you go (PAYG) withholding tax. 150–180 words
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What is Pay As You Go (PAYG) withholding?

When you make payments to employees and some contractors, you need to withhold an amount and send it to the Australian Taxation Office (ATO) at regular intervals. The ATO calls this Pay As You Go (PAYG) withholding.

When do I have to register?

You'll have withholding obligations if any of the following apply:

  • you have employees
  • you have other workers, such as contractors, and you enter into voluntary agreements to withhold amounts from your payments to them
  • you make payments to businesses that don't quote their Australian business number (ABN).
  • If you make payments subject to withholding, you must:

    • Register for PAYG Withholding as soon as you know you need to withhold
    • withhold amounts from wages and other payments
    • lodge activity statements and pay the withheld amounts to the ATO
    • provide payment summaries to all employees and other payees by 14 July
    • provide a PAYG withholding payment summary annual report to the ATO by 14 August.
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