PAYG withholding¶

Definition. PAYG withholding is the tax an employer holds back from an employee's pay and sends to the ATO towards the employee's end-of-year tax.

In plain English¶

Each payday, the employer keeps some of the employee's pay aside for tax and passes it to the ATO. This helps the employee cover their tax bill at the end of the year, so there is less to pay at tax time.

Related lessons¶

• PAYG withholding explained

General information only — not tax, super or financial advice.