Free PAYG withholding calculator for Australian employers. Calculate the correct amount of tax to withhold from employee wages based on ATO tax tables for FY 2024-25 and 2025-26. Supports tax-free threshold claims, HELP/HECS debt, and all pay frequencies.
Tax to Withhold
$0.00
Per fortnightly pay period
Net Pay
$0.00
Effective rate: 0.0%
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As an employer, you're required to withhold tax from payments to employees under the PAYG withholding system. The amount to withhold is determined by the ATO's tax tables, which take into account the employee's income level, residency status, tax-free threshold claim, and any HELP debt.
The ATO publishes weekly, fortnightly, and monthly tax tables that show exactly how much to withhold for each income range. Our calculator uses the official marginal rate formula to calculate withholding, which closely matches the published tax table amounts.
Report amounts withheld on your BAS at label W1 (total salary/wages paid) and W2 (total amount withheld). At the end of the financial year, you also need to complete payment summaries for each employee and lodge an annual PAYG withholding report.
PAYG (Pay As You Go) withholding is the system where employers withhold tax from payments to employees and send it to the ATO. The amount withheld depends on the employee's income level, whether they claim the tax-free threshold, and whether they have a HELP debt.
If an employee doesn't provide a Tax File Number (TFN) within 28 days of starting work, you must withhold tax at the top marginal rate of 47% (including Medicare levy) from every dollar of their pay. No tax-free threshold applies.
Most small to medium employers remit PAYG withholding quarterly through their BAS. Large employers (withholding $25,000+ per month) remit monthly. The ATO notifies you of your reporting cycle.
Generally no, unless the contractor doesn't quote an ABN. If no ABN is quoted, you must withhold 47% from the payment. Contractors manage their own tax obligations.
OneBookPlus handles invoicing, GST tracking, BAS prep, and ATO lodgement automatically.
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