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NSW Employer Failed to Deduct PAYG - What to Do?

Discussion in 'Employment Law Forum' started by crankie, 4 August 2016.

  1. crankie

    crankie Member

    4 August 2016
    Likes Received:
    I have been advised that due to my employer failing to withhold sufficient PAYG, I have been left with a Taxation bill of $6000.

    As in previous years, I had varied my tax. I did at the end of the last financial year write to my employer to confirm that the variation they had had and end date and so I should be paying normal PAYG. I received a reply confirming that the correct rate was now being applied. This obviously was totally wrong and now I am left with a $6000 debt.

    I again wrote to my employer and ask how this happened and what they were going to do about it. No reply has been forthcoming.

    Do I have any options?
  2. Sophea

    Sophea Guest

    Is the tax that is said to be deducted on your payslip accurate? Or does it correspond with the incorrect amount that was paid to the tax office?

    I believe sometimes employers are liable for penalties when they fail to pay owing PAYG amounts, however this may not apply since some has been paid, just not enough.

    I have heard mention of people trying to explain their innocent circumstances to the ATO, however i'm not sure of their outcomes, and at the end of the day you owe tax to the ATO.

    You can however usually work out a payment plan to pay off the debt with the ATO.
  3. Tim W

    Tim W Lawyer
    LawTap Verified Lawyer

    28 April 2014
    Likes Received:
    I agree with @Sophea.

    While the obligation to collect PAYG is on your employer,
    in the end, you are the taxpayer.

    Please explain what you mean by
    "As in previous years, I had varied my tax" ?
    I ask because there are relatively few PAYG jobs where this is an option.
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