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What is PAYG?

PAYG, which stands for pay-as-you-go (PAYG) withholding, is a system by which employees and businesses make small tax payments throughout the year so that they can more easily meet their overall tax liabilities at the end of the year, without leaving either a large credit or liability. This money is generally taken out of your paycheck.

If your tax situation changes - perhaps because your number of dependents changes or you have an unusually large number of tax-deductible expenses in a given year - you can request an increase or decrease in the amount of money withheld so that it more accurately meets your tax obligations.