What is PAYG withholding for employees?
Learn what PAYG withholding means for employers who pay employees.
Summary
PAYG withholding requires employers to withhold amounts from certain payments, including employee wages, and report and pay withheld amounts to the ATO.
What this means
PAYG withholding helps collect income tax from payments made to employees and certain others. Employers may need to register for PAYG withholding and report through Single Touch Payroll.
The amount withheld depends on ATO tax tables and the worker’s circumstances.
Typical actions
- Register for PAYG withholding if required.
- Collect employee tax file number declaration information.
- Withhold amounts from wages using ATO guidance.
- Report payroll through STP.
- Pay withheld amounts to the ATO by the due date.
Official ATO sources
Last checked: 20 June 2026
PAYG withholding
Explains PAYG withholding and payments it applies to.
Obligations when people work for you
Explains employer tax and super obligations.
Single Touch Payroll
Explains reporting payroll information through STP.
Related questions
- What tax obligations do employers have?
- What is Single Touch Payroll?
- What records do employers need to keep?
- What happens if an employer does not withhold tax?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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