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Heary(Initiate)Initiate
15 Mar 2021

Hi

I will be receiving a large lump sump payment in arrears next pay for underpayment for 3 financial years -namely 17/18,16/17 and 15/16. I have recieved one back payment already for ye 18/19 . Payroll had advised me that witholding for this payment was calculated under part A schedule 5. Tax office info states that Bii method although more work involved gives a more accurate figure. However I cannot work out if this means less or more tax will be deducted using Bii , than using A method. I would rather have more than less tax deducted , so checking if I should ask payroll to calculate using Bii or stick with A. Hope my question is clear. Many thanks

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TonyATO(Community Support)Community Support
ATO Certified Response18 Mar 2021

Hello @Heary

Thank you for your patience.

Although this seems like a simple question, we can't provide a definite answer because everyone's circumstances are different.

The only way to work out if method A, B (i) or B (ii), will result in more or less tax, is to go through the steps and calculations for each method.

Unfortunately, you will need to do the calculations yourself, or get your payroll or accountant to do it for you.

All the best,

Tony

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Schedule 5 Aor Bii? | ATO Community