How to calculate PAYG
During PAYG registration, you will be asked 'What ($) amount is expected to be withheld from payees each year? (No decimals)(?)
You can use a range of tools to calculate the PAYG withheld based on the salary of workers.
You can use the Fair Work Award finder in combination with a PAYG calculator to work out the expected salary/award, and then the PAYG owed for each of your employees.
This is an estimate, and if the amount changes when it comes to completing payroll, there is no penalty for your business.
What is PAYG?
In Australia, it is a requirement for all employees to pay tax on their income.
As an employer, or if you are planning to hire any direct employees (does not apply to contractors) you will need to register for PAYG.
PAYG stands for Pay As You Go, and is a system set in place to incrementally take tax out of wages to cover your Employee's tax obligations.
How to register for PAYG
In the Lawpath company compliance registration package, you will have the option to register for PAYG, simply by choosing 'yes' on the form.
If you choose not to register for PAYG at the company set-up, or currently have no employees, you can opt into PAYG if and when you need to directly with the ATO.
Help with Payroll and Set Up
It is always best to check with experts when setting up payroll and registering new businesses, as getting it wrong can have large legal and financial ramifications.
Our team of experts can assist, and on the Legal and Accounting Plan you can have access to unlimited 30-minute consultations and advice on the best way to set up your company, and year-long access to help support the running of your new business.
Find out more here: