What is PAYG (Pay As You Go)?
Finance & accounting. A plain-English definition for Australian business owners.
PAYG is the system by which the ATO collects income tax from employees and businesses progressively throughout the year, rather than as a lump sum at year-end.
PAYG withholding refers to amounts withheld from employee wages and remitted to the ATO via the BAS. PAYG instalments refer to advance payments of expected income tax for businesses and individuals with investment income. Both are calculated against current ATO tables and lodged through the BAS.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.