GD Accounting Glossary
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PAYG Withholding

Tax an employer withholds from wages and remits to the ATO on the employee's behalf, reported via BAS.

Pay As You Go withholding requires employers to hold back tax from employees\' wages and send it to the ATO via the BAS, typically monthly or quarterly.

Withheld amounts are the employee\'s tax, not the employer\'s money — treating withholding as working capital is a fast route to serious trouble with the ATO.

Related terms
Payroll BAS (Business Activity Statement) Gross Pay Net Pay
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