3. Pay As You Go (PAYG)
All organizations, including incorporated associations, that employ staff are subject to PAYG withholding obligations from salaries and wages paid to employees. Associations that are exempt from income tax are not exempt from PAYG. Associations are required to withhold an amount from an employee's pay and send this to the ATO. The amount of money that is withheld depends on how much the employee earns and the information the employee has provided in the Tax File Number Declaration.
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PAYG is an important obligation for associations that employ staff and there are penalties for non-compliance. More information on PAYG and registering for PAYG may be found in the ATO publication Tax basics for non-profit organisations. The ATO website also has more detailed information. |
