Pay As You Go (PAYG) Employee

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The most common employment arrangement, where the employer pays their employee or contractor and withholds tax from their salary. The employer, rather than the recipient of the income, pays the tax directly to the ATO on their behalf. At the end of the financial year, a tax return is required to reconcile tax paid after other income and deductions are included. This may result in a tax refund or debt for the employee.

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