PAYG stands for 'Pay As You Go' withholding, a system used in Australia that involves businesses withholding a certain amount of payment for tax purposes.
When registering an Australian Business Number (ABN), businesses may also need to register for PAYG withholding if they make payments to employees, contractors, or other businesses that do not provide an ABN. This system helps individuals meet their tax obligations by having tax taken out of payments throughout the year, rather than a lump sum at the end of the financial year.
It's important to note that registration for PAYG withholding must be done before the first payment that requires withholding is made. For businesses with an active ABN, registration can be completed via our online platform or the Australian Taxation Office's Business Registration Service or with the assistance of a tax or BAS agent.
For further guidance, contact Namecorp’s Support and Compliance Team either by phone on 1300 006 263 or via email at support@namecorp.com.au.