A business and a contract worker who has an Australian Business Number can make a Voluntary Agreement to bring the contract worker's payments into the PAYG Withholding System if the work payments are not subject to any other PAYG Withholding Tax.
This paper summarises the procedures that must be adopted to achieve this. The paper is presented in four pages, including commentary on:
- PAYG Taxation System
- Voluntary Agreement
- Voluntary Amount Withheld
- Who Can Enter Into A Voluntary Agreement?
- What Is In The Agreement?
- Withholding Rate
- Lodgement Of Business Activity Statements By Contract Workers
- Reporting Amounts Withheld
- Payment Summaries - Voluntary Payments
- Annual Reporting To Australian Taxation Office
and includes as an Addendum a Payment Summary for Voluntary Agreements.
