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Saylward(Newbie)Newbie
19 Dec 2023

Hi,


I was employed by an organisation as a casual (my second job at the time), I now also work full time for this organisation. I have two payroll IDs and different employment contracts as they fall under seperate legislation.


Prior to taking on the full time role, I wasn’t claiming the tax-free threshold on my causal employment. Now that I have two roles I wish to claim tax-free on full time role and leave causal as not. I have been told by payroll that this is not possible, I have to claim tax-free or not.


The casual role pays monthly and the full time role fortnightly. Once a month both pays fall within the same pay run. I was under the assumption that each roles pay would be taxed individually. However, I am being taxed as if both incomes are from the one role; this is happening on both fortnight pays as the monthly pay is already loaded into the system (casual role is backpay of the previous months work).


Because the causal role fluctuates greatly due to its on-call nature, my fortnightly pay is constantly different in the net pay amounts. Is this correct?


I only ask because if the roles are taxed individually I am paying significantly less tax even with the tax-free and non tax-free aspect (used ATO tax withholding calculator to work this out) than if they were combined during pay run. I also don’t like the uncertainty of my fortnightly pay fluctuating so much. Whilst I understand both pays are coming from the same employer, I assumed the pays themself would be kept seperate due to their rates and legislations.

5,004 views
2 replies
5,004 views
2 replies

Most helpful response

Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
20 Dec 2023

Hiya @Saylward 👋


The ATO guidance DOES refer to "more than one job" because they like to make their guidance "simple and easy-to-understand" but not necessarily accurate. They don't really mean "job" they mean payer.


Tax is based on payments by a specific payer. If you have multiple jobs (FW definition) with the same payer, then you are taxed on the total income paid by that payer.


What you have is concurrent employment (more than one contract of employment with the same payer) and therefore ATO guidance is a bit off for your circumstance.


What is occurring in your payroll with respect to tax is accurate. If you got another job with a DIFFERENT payer, then your TFN declaration can nominate not to claim the tax-free threshold.


Deanne

All replies

Deb_ATO(Community Support)Community Support
20 Dec 2023

Hi @Saylward


From what you’ve said you only have one employer.

When you have more than one employer this is when you can ask the other employer to claim or not claim the tax-free threshold.


If you think you're not paying enough tax you can request a change to the amounts of tax withheld from your income.


Check out our further info on how to do this Income from more than one job.


Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
20 Dec 2023

Hiya @Saylward 👋


The ATO guidance DOES refer to "more than one job" because they like to make their guidance "simple and easy-to-understand" but not necessarily accurate. They don't really mean "job" they mean payer.


Tax is based on payments by a specific payer. If you have multiple jobs (FW definition) with the same payer, then you are taxed on the total income paid by that payer.


What you have is concurrent employment (more than one contract of employment with the same payer) and therefore ATO guidance is a bit off for your circumstance.


What is occurring in your payroll with respect to tax is accurate. If you got another job with a DIFFERENT payer, then your TFN declaration can nominate not to claim the tax-free threshold.


Deanne

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Full-time and Casual employment with same employer | ATO Community