Screen a payment for whether tax must be withheld
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the payee and the payment the lawyer describes, record the category on the page. Employees generally have amounts withheld. Independent contractors generally do not, unless a voluntary agreement asks for withholding. The most common payments the page names are payments to employees, to directors, to businesses that do not quote an ABN, and to independent contractors with a voluntary agreement. Drawings by a sole trader or a partner are not wages and are not withheld from; the page points to PAYG instalments instead. Record any other category the lawyer names from the page: investment income where a TFN is not provided, dividends interest and royalties paid to foreign residents, payments to certain foreign residents for gaming entertainment sports and construction, payments to Australian residents working overseas, super income streams and annuities, and payments to beneficiaries of closely held trusts. Record that a labour-hire firm must withhold from payments to both employees and independent contractors, as the page states that card. Do not decide whether a worker is an employee, and do not calculate an amount.
- What the lawyer must review
- The lawyer decides the working relationship, whether an ABN or TFN was quoted, whether a voluntary agreement exists, and whether a special category applies. The linked detail pages were not opened. No withholding rate is taken from this page.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the payee and the payment the lawyer describes, record the category on the page. Employees generally have amounts withheld. Independent contractors generally do not, unless a voluntary agreement asks for withholding. The most common payments the page names are payments to employees, to directors, to businesses that do not quote an ABN, and to independent contractors with a voluntary agreement. Drawings by a sole trader or a partner are not wages and are not withheld from; the page points to PAYG instalments instead. Record any other category the lawyer names from the page: investment income where a TFN is not provided, dividends interest and royalties paid to foreign residents, payments to certain foreign residents for gaming entertainment sports and construction, payments to Australian residents working overseas, super income streams and annuities, and payments to beneficiaries of closely held trusts. Record that a labour-hire firm must withhold from payments to both employees and independent contractors, as the page states that card. Do not decide whether a worker is an employee, and do not calculate an amount. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- An independent contractor is recorded as generally not withheld from, unless the lawyer says there is a voluntary agreement.
- A missing ABN, for a business, and a missing TFN, for investment income, are recorded as the page's triggers.
- Sole trader and partner drawings are not treated as wages.
- No rate and no employee-or-contractor conclusion are stated.
Sources
- Australian Taxation Office, Payments you need to withhold from, last updated 11 June 2025 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.