Pay As You Go (PAYG) Withholding
Small Business and Large Business alike have an obligation to collect tax from payments they make to employees and some businesses so they can meet their end-of-year tax liabilities.
Business have withholding obligations if any of the following apply:
They have employees
They have other workers, such as contractors, and you enter into voluntary agreements to withhold amounts from your payments to them
They make payments to businesses that don't quote their Australian business number (ABN).
The business must apply to register for PAYG withholding before you are first required to withhold an amount from a payment.
Jeffkins Accountancy Melton being experienced Small business advisors can assist with all your employment registration requirements.