As an employer, you are very likely to be required to withhold amounts from payments you make to employees. This is called pay as you go (PAYG) withholding. An example is withholding tax on wages or salaries.

You must register for PAYG withholding, before you are first required to make a payment that is subject to withholding, even if you don’t withhold an amount from a payment made.

If your business has an active ABN, you can register for a PAYG withholding business account:

• online using ATO Online services for business
• through your registered tax or BAS agent
• using your Standard Business Reporting (SBR) compatible product
• by calling the ATO business line.