My employer is registered as a WHM employer, but they are arguing that because my contract is an ongoing permanent salary of $60k, they are legally required to withhold tax at 30% from my very first paycheck. Can someone please confirm that the type of contract does not matter and they should be withholding at the standard progressive 15% rate for my weekly pay periods since my year-to-date income is under $45,000?
G'day @Isabella_11 👋
Perhaps you can ask your employer to read the ATO WHM tax table that explains how they are to calculate tax 🤓
They will see that we don't tax based upon what WILL BE PAID but what is actually paid 😉
I shudder to think of those WHM they may have employed before you 🫣
Deanne
Hi @Isabella_11,
@PayrollDeanne’s response is correct.
Your employer should work out tax based on what is actually paid to you each pay period, rather than what you might earn over the full year. This is how the working holiday maker (WHM) tax tables are designed to operate.
It might help to have another conversation with your employer and show them the links provided. Where too much tax is withheld during the year, you can lodge a tax return to get the overpayment back.
If you believe there are broader issues with how you’re being paid, you may also wish to contact the Fair Work Ombudsman for further assistance.
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