If you’re anything like me, you would want to simplify tax as much as possible. This is where a Pay as You Earn system or PAYG as it is known in Australia will help. Employees will pay tax on their income from employers at the point of each payment. Then their income tax is already accounted for, making things easier at tax time.
For example…
XYZ enterprises have 10 employees. Their payment cycle runs on a monthly basis. Each employee is on the PAYE scheme, which means a percentage of their pay is taken out in tax and paid to the relevant authorities each time. Employees, therefore, need only to declare other sources of non-taxed income and not worry about their income from XYZ.
