𝐏𝐚𝐲𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐬𝐭𝐚𝐟𝐟’𝐬 𝐏𝐀𝐘𝐆 𝐖𝐢𝐭𝐡𝐡𝐨𝐥𝐝𝐢𝐧𝐠….

When you are thinking about priorities of paying down some debt in your business, make sure the ATO is high on your list. The unpaid PAYG Withholding for your staff has the potential to become your personal debt if you are a director.

Even if the company has been liquidated by a registered liquidator, the ATO can reinstate the unpaid PAYG Withholding and make it the directors’ personal debt. The only way to avoid that is for the director to be bankrupt, which is not ideal and has long-lasting ramifications.

The best way to avoid having your staff’s PAYG Withholding becoming your personal debt is to ensure you lodge all activity statements on time. Even if you can’t pay them in full or at all, lodging the activity statement form on time will give you a chance to avoid having this unpaid debt becoming your personal debt (for directors). It will also reduce late lodgement penalties.

Just a quick reminder, monthly activity statements are due 21 days after the end of the month.

Quarterly activity statements are due 28 days after the end of the quarter: except December, you have until 28 February. Also, if you are using a registered agent, you have a further 28 days to lodge.