Pay As You Go (PAYG) is a system in Australia for withholding income tax from payments made to employees and certain contractors. Here’s a brief overview:
1. Employee Payments: Employers deduct tax from employees' wages or salaries and remit it to the Australian Taxation Office (ATO) on their behalf.
2. Business Payments: Businesses may also need to withhold tax from payments made to contractors who do not provide an ABN (Australian Business Number).
3. Purpose: The PAYG system helps individuals meet their tax obligations gradually throughout the year rather than in a lump sum at tax time.
4. Reporting: Employers must report PAYG withholding amounts regularly, usually on a monthly or quarterly basis.
5. PAYG Instalments: Self-employed individuals or businesses with significant income may also be required to make PAYG instalments, which are advance payments towards their expected tax liability.
At YS Accounting, we specialize in helping with their PAYG Instalments ensuring compliance with Tax Return requirements. Please feel free to schedule an appointment with us on our website at www.taxbne.com.au/. We look forward to providing you with the support you need.
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