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HECS DEBT REPORTING BY EMPLOYER

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Initiate

Views 2182

Replies 3

I’m the employer how and when do I withhold an employees hecs debt and by how much?
Also, when does an employer have to report the employees hecs debt? Is it through the monthly payroll tax?
1 ACCEPTED SOLUTION

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Best answer

ATO Certified

Devotee

Replies 0

Hi @bunify

 

PAYG withholding is different to payroll tax. Payroll tax is a state tax; PAYG withholding is where employers collect pay as you go (PAYG) withholding amounts from payments they make to their employees and send it to us at the end of the financial year. 

 

If you're an employer, you must register for PAYG withholding before you're required to withhold an amount from a payment. If you have withheld tax amounts from payments you make to your payees, you need to:

  • provide the withheld amounts to us
  • report those amounts to us regularly on activity statements
  • lodge an annual report confirming your total withholding
  • provide payment summaries detailing total payments and withholding to each of your payees.

When you registered for PAYG withholding, you'll need to tell us how many employees you've hired so we can work out if you report and pay to us each quarter, each month or twice a week. 

 

There are different types of payments you'll need to withhold from, and you'll need to use the information from your employee's tax file number declaration form to work out how much to withhold. If you'd like to talk to someone about registering for PAYG withholding and how to pay and report, you can 

  • request an after-hours call back or live chat using our Small Business Assist - type in 'live chat' or 'call back' to make an appointment
  • phone us on 13 28 66 between 8:00am and 6:00pm Monday to Friday
  • register for our Business Assistance Program - a program where we arrange regular discussions with you to help you get your small business's tax and super obligations up-to-date. 

Thanks!

3 REPLIES 3
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Devotee

Replies 2

Hi @bunify,

 

Welcome to Community! We have tax withheld calculators and tax tables to help you work out how much to withhold from employees' salary and wages - select the calculator/tax table that applies to your employee's pay cycle.

 

You'll report the additional amounts you've withheld for your employee's HELP repayment as part of your normal pay as you go (PAYG) withholding. Our guide to PAYG withholding is full of useful information, handy resources and examples to help you get your withholding right.

 

Let us know if you have any other questions! Thanks.

Highlighted

Initiate

Replies 1

When and how do you report PAYG? so the HECS debt should be withheld with the PAYG?

Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @bunify

 

PAYG withholding is different to payroll tax. Payroll tax is a state tax; PAYG withholding is where employers collect pay as you go (PAYG) withholding amounts from payments they make to their employees and send it to us at the end of the financial year. 

 

If you're an employer, you must register for PAYG withholding before you're required to withhold an amount from a payment. If you have withheld tax amounts from payments you make to your payees, you need to:

  • provide the withheld amounts to us
  • report those amounts to us regularly on activity statements
  • lodge an annual report confirming your total withholding
  • provide payment summaries detailing total payments and withholding to each of your payees.

When you registered for PAYG withholding, you'll need to tell us how many employees you've hired so we can work out if you report and pay to us each quarter, each month or twice a week. 

 

There are different types of payments you'll need to withhold from, and you'll need to use the information from your employee's tax file number declaration form to work out how much to withhold. If you'd like to talk to someone about registering for PAYG withholding and how to pay and report, you can 

  • request an after-hours call back or live chat using our Small Business Assist - type in 'live chat' or 'call back' to make an appointment
  • phone us on 13 28 66 between 8:00am and 6:00pm Monday to Friday
  • register for our Business Assistance Program - a program where we arrange regular discussions with you to help you get your small business's tax and super obligations up-to-date. 

Thanks!