Question

What is the benefit for large clients making monthly PAYG instalments on wages paid?

Answer 1

Ans: PAYG stands for pay as you go , it is a mechnaism where the employer has the chance to make payment on regular basis as per the expected liability at the year end. It helps to discharge liability in small installment instead of pilling up a large liability at the year end thus ensures proper fund management. also avoid the risk of high penalty and high rate of interest if the year end installment is not paid within the due period as a part of liability would have been already paid off.