How to complete activity statement labels for PAYG withholding?

According to the ATO, the following guide will assist the employers to complete the ‘Pay as you go’ (PAYG) withholding part of their activity statement.

PAYG withholding, payers (generally businesses and other enterprises) must withhold tax from certain payments made to others. These payments include:

  • payments to employees, company directors, and officeholders.
  • payments made to workers under labor hire arrangements.
  • payments under voluntary agreements.

payments where an Australian business number (ABN) has not been quoted in relation to a supply.

A taxpayer must report these withheld amounts in the PAYG tax withheld section of your BAS and pay all withheld amounts to ATO.