PAYG Tax
What is PAYG Tax?
PAYG Tax stands for Pay As You Go tax. As the name suggests this system allows individuals and businesses to pay their expected taxes in advance and as instalments.
As and when the employees receive payments during an income year, as per their tax liabilities the employer can withhold the taxes.
Along with the income tax it is used to collect superannuation funds, medicare payments and Higher Education Loan Program repayments.
Is PAYG Tax the same as PAYE Tax?
In the year 2000 this system replaced the Pay As You Earn (PAYE) tax arrangement.
What is PAYG Summary?
At the end of each income year the employer must share with the Australian Taxation Office and the employee details of the annual PAYG withholding payment summary. These details are termed as PAYG Summary.
Please feel free to contact IPS via email or phone regarding any further details about payg services.