My understanding is when an employee is paid for all work done within a week, whether they worked 1 day or 7, they use the weekly tax rate. When an employee is paid for a day of work, potentially multiple times per week, the daily tax rate is used. This is because the weekly tax rate is designed to tax for 1/52 of the income earned while the daily tax rate taxes 1/365th of the income earned. Or if they show up to work on a casual basis, they get taxed the daily rate and if they show up for work regularly in the week, they are taxed the weekly rate.
40 views
1 replies
All replies
G'day @Boxy76 👋
You use the daily and casual tax table when you pay or engage casual workers on a daily basis, as per that tax table 😉
As you can see from the statement of formulas, the basis of the tax calculation is the weekly tax table 🤓
Deanne