Taxation Services
PAYG Withholding & Instalment Reporting
PAYG obligations affect both employers (withholding from wages) and business owners and investors (instalments toward their own tax). PHC & Associates ensures you meet both obligations accurately — and helps you avoid overpaying or underpaying throughout the year.
1000+
Clients Advised
CPA
Certified
Monthly
Board Packs Delivered
Two Types of PAYG
Withholding vs Instalments — We Handle Both
PAYG Withholding
For employers — amounts withheld from employee wages, salaries, and contractor payments and remitted to the ATO.
- Correct withholding rate setup
- Reporting via BAS each period
- Annual PAYG payment summary reconciliation
- Single Touch Payroll (STP) compliance
- Director fee and contractor withholding
PAYG Instalments
For business owners and investors — quarterly or annual pre-payments toward your expected income tax liability.
- Review of ATO-calculated instalment rate
- Variation to reduce or increase instalments
- Avoid underpayment penalties at tax time
- Advising on cash flow impact
- Annual reconciliation in your tax return
What's Included
Our Full PAYG Service
PAYG withholding registration and setup for new employers
Correct withholding calculations based on employee Tax File Number declarations
PAYG withholding reported within your BAS each period
Single Touch Payroll (STP) Phase 2 setup, reporting, and finalisation
Annual income statement finalisation via STP (replaces payment summaries)
Same Day Super — superannuation guarantee compliance and payment timing advice
PAYG instalment variation lodgement (Form T)
Instalment rate and amount advice to optimise cash flow
Penalty remission for inadvertent withholding errors
Coordination of PAYG obligations across multiple entities
Employer Obligations
Single Touch Payroll & Same Day Super
Two of the most important recent changes to employer obligations in Australia — both now mandatory. We ensure you're fully set up and compliant.
Single Touch Payroll (STP)
Single Touch Payroll requires employers to report employees' wages, PAYG withholding, and superannuation information to the ATO directly at the time each pay run is processed — rather than at year-end. All employers, including those with a single employee, must comply.
What we assist with:
- STP Phase 2 registration and software setup
- Correct income type and disaggregation of gross reporting
- Year-end finalisation and income statement submission
- Correcting STP errors and amended event lodgements
- Closely held payee concession reporting
Same Day Super
From 1 July 2026, employers will be required to pay superannuation guarantee contributions on the same day as wages are paid — a major shift from the current quarterly payment cycle. This change will significantly affect payroll cash flow planning and systems for most businesses.
What we assist with:
- Transition planning ahead of the 1 July 2026 start date
- Cash flow forecasting for same-day payment obligations
- Payroll system and super clearing house review
- Superannuation guarantee compliance and SGC charge advice
- Integration with STP reporting for super guarantee amounts
Same Day Super — Act Before 1 July 2026. The move to same-day super will require many businesses to update their payroll processes, cash flow management, and clearing house arrangements well before the deadline. Contact us now to assess your readiness and plan the transition.
How It Works
Getting Your PAYG Right
We set you up correctly from the start and review your obligations every period.
Initial Review
We assess your current PAYG obligations — withholding as an employer and/or instalments as a taxpayer.
Setup & Registration
If needed, we register you for PAYG withholding with the ATO and set up correct rates.
Periodic Reporting
Withholding is reported in each BAS. Instalments are reviewed each quarter for accuracy.
Variations (if needed)
We lodge variation notices to adjust your instalments if income changes during the year.
Annual Reconciliation
PAYG amounts are reconciled and credited in your final income tax return.