Calculate the correct PAYG (Pay As You Go) tax to withhold from employee wages. Based on ATO 2025–26 tax withholding schedules for weekly, fortnightly, and monthly pay periods.
| Item | This period | Annual equiv. |
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Employers must withhold tax from employee wages and remit to the ATO. The amount depends on the employee's annual earnings (annualised from the pay period), their TFN status, whether they claim the tax-free threshold, and any other adjustments.
If an employee does not provide their TFN, withhold at the maximum rate of 47% (top marginal rate + Medicare levy) — regardless of actual income.
Australian residents can claim the tax-free threshold ($18,200) at one employer only — usually the primary employer. If claimed, less tax is withheld each pay period.