BUS39409 N 10060514
BUS39409 N 10060514
BUS39409 N 10060514
NAT 1006-05.2014
When there are 27 pay periods When your employee has a HELP
in a financial year or FS debt
In some years, you may have 27 pay periods instead of the If your employee has an accumulated HELP or FS debt, you
usual 26. As this table is based on 26 pays, the extra pay may may need to withhold additional amounts from their payments.
result in insufficient amounts being withheld. You should let your Your employee will need to notify you of this on their Tax file
employees know when this occurs so if they are concerned number declaration or Withholding declaration.
about a shortfall in tax withheld, they can ask you to withhold
the additional amount in the table below.
To calculate additional withholding amounts for:
Fortnightly earnings Additional withholding ■■ HELP debts, refer to Higher Education Loan Program
$ $ fortnightly tax table (NAT 2185)
■■ FS debts, refer to Student Financial Supplement
1,400 to 3,049 12 Scheme fortnightly tax table (NAT 3307)
3,050 to 6,799 17
6,800 and over 42 If your employee has not given you their TFN do not
withhold any amount for HELP or FS debts.
Use a formula
The withholding amounts shown in this table can be expressed Allowances
in a mathematical form.
Generally, allowances are added to normal earnings
If you have developed your own payroll software package, refer and the amount to withhold is calculated on the total amount
to Statement of formulas for calculating amounts to be withheld of earnings and allowances.
(NAT 1004) available on our website at ato.gov.au/taxtables
declarations
The answers your employees provide on their Tax file number
declaration (NAT 3092) determine the amount you need to
Holiday pay, long service
withhold from their payments. A Tax file number declaration
applies to any payments made after you receive the declaration.
and employment termination
If you receive an updated declaration from an employee, it will
override the previous one.
payments
If an employee does not give you a valid Tax file number
declaration within 14 days of starting an employer/employee
Employees who continue working
relationship, you must complete a Tax file number declaration for you
with all available details of the employee and send it to us.
You must include holiday pay (including any leave loading) and
long service leave payments as part of normal earnings, except
when they are paid on termination of employment.
When a TFN has not been provided
You must withhold 49% from any payment you make to a
resident employee and 47% from a foreign resident employee For more information, refer to Withholding from annual and
(ignoring any cents) if all of the following apply: long service leave for continuing employees (NAT 7138).
■■ they have not quoted their TFN
■■ they have not claimed an exemption from quoting their TFN
■■ they have not advised you that they have applied for a TFN
or have made an enquiry with us.
If an employee states at question 1 of the Tax file number
declaration they have lodged a Tax file number – application
or enquiry for individuals (NAT 1432) with us, they have 28 days
to provide you with their TFN.
If the employee has not given you their TFN within 28 days,
you must withhold 49% from any payment you make to a
resident employee and 47% from a foreign resident employee
(ignoring any cents) unless we tell you not to.
If the exact tax offset amount claimed is not shown in the ready
Example reckoner, add the values for an appropriate combination.
An employee has fortnightly earnings of $987 and, if using
column 2, the amount to be withheld is $72. Example
The employee claims a tax offset entitlement of $1,000 Tax offsets of $422 claimed. Add values of $400, $20
on their Withholding declaration. and $2.
Using the ‘Ready reckoner for tax offsets’, the fortnightly = $15.00 + $1.00 + $0.00
value is $38.
= $16.00
The total amount to be withheld is worked out as follows:
Therefore, reduce the amount to be withheld by $16.00.
Amount to be withheld on $987 $72.00
less fortnightly offset value $38.00
Total amount to be withheld $34.00
Medicare levy adjustment Copies of weekly and fortnightly tax tables are available
from selected newsagents. Selected newsagents also hold
copies of the following:
To claim the Medicare levy adjustment available to some low
■■ Tax file number declaration (NAT 3092)
income earners with dependants, your employee must lodge
a Medicare levy variation declaration (NAT 0929) with their ■■ Withholding declaration (NAT 3093).
Tax file number declaration.
Some employees may be liable for an increased rate of
Medicare levy or the Medicare levy surcharge as a result of
new income tests. They can lodge a Medicare levy variation
declaration, requesting you to increase the amount to be
withheld from their payments.