When to Pay and Report on Activity Statements
Your obligations as an employer for paying and reporting PAYG withheld amounts depend on whether you are a small, medium or large withholder.
The withholding cycle is the period that you have to notify and pay amounts withheld (for example weekly, monthly, quarterly) and it is determined by the annual withholding amount.
For small and medium withholders, the activity will show the date the completed form and payment is due to the ATO.
Small Withholders
- Withholds employee PAYG tax of $25,000 or less a year
- Pays withholding amounts to the ATO each quarter
- Reports withholding on activity statements received each quarter
Medium Withholders
- Withholds employee PAYG tax of $25,001 to $1 million a year
- Pays withholding amounts to the ATO each month
- Reports withholding on activity statements received each month
Large Withholders
- An individual or business that withheld amounts totalling more than $1 million in a previous financial year, or is part of a company group that has withheld more than $1 million in a previous financial year
- Amounts withheld are paid, and sent electronically to the ATO twice a week
- Date for payment depends upon the day withholding took place:
| Withholding dates for payment | |
| If you withhold an amount on: | You must pay the withheld amount to the ATO on: |
| Monday or Tuesday | the following Monday |
| Wednesday | second Thursday after that day |
| Thursday or Friday | the following Thursday |
| Saturday or Sunday | second Monday after that day |
Note: When the due date is a public holiday, you may pay on the next working day.
Large Withholder’s Discretionary Extensions to Payments
From time to time, you may make payments of small amounts outside your regular payment cycle. You may delay payment to the ATO until the next regular payment date if the amount is the lesser of either:
- 0.5% of the amount you withheld in the previous financial year
- $50,000
If the total amount is more, the total amount must be paid by the relevant due date, unless you apply to the Commissioner in writing to extend the due date for payment of an amount that exceeds the threshold. Large withholders may also offset a net GST credit against a PAYG withholding liability.
If you have a net GST credit for a tax period, it can be offset against your PAYG withholding liability. GST credits can only be offset against one withholding liability in any GST reporting period.
Payroll for Large Employers
When to Pay and Report on Activity Statements
Your obligations as an employer for paying and reporting PAYG withheld amounts depend on whether you are a small, medium or large withholder. This is determined by the annual withholding amount.
The difference between withholders is as follows:
- Annual Withholding When to Report
- Small withholders $25,000 Quarterly Activity Statement
- Medium withholders $25,001 to $1,000,000 Monthly Activity Statement
- Large withholders $1,000,000 & over Fortnightly Electronic Payment to ATO
If you are a large withholder, there are specific timeframes in which you need to make the payment which can be found here.
When do I need to register for Payroll Tax (WA)?
If you are an employer with annual taxable wages in Australia between $1,000,000 and $7,500,000, there will be a 5.5% Payroll Tax Charge due to the Office of State Revenue.
Payroll tax is a self assessed tax meaning that the onus is on you, as an employer, to ensure that any information you provide is correct and that you comply with your tax obligations.
Depending on your payroll size, your return could be due Monthly, Quarterly or Annually. These returns can be completed online via the Office of State Revenue website. Once you have completed your return, the form will direct you to Payment Options to make your payment for the period.
For more information, visit the WA Payroll Tax Website here.