I have just been paid out my annual leave for 81.75 hours. It came to a total off $2482.29. they did have to deduct some over pay of $455.47. Which left me with $2026.29.
I have then been taxed $936 which is almoat 50% meaning I am losing almost half of the pay out.
Surely this isn't correct??
Hi @Hayleymmmmmm,
The withholding rate depends on how the payment's been made to you.
If you've ceased employment because of genuine redundancy, invalidity or an early retirement scheme it's 32% withholding. If you've left employment for other reasons, they need to work it out at a marginal tax rate.
Unused leave payments for continuing employees are calculated using the tax table for back payments, commissions, bonuses and similar payments. They can choose method A or method B to work out the withholding rate.
If you look at this and don't think it's right, have a chat with your employer. Unfortunately they can't re-imburse you if there's been a mistake, but they can report it to us so we can set things straight when you lodge your tax return.
Hi @Hayleymmmmmm,
The withholding rate depends on how the payment's been made to you.
If you've ceased employment because of genuine redundancy, invalidity or an early retirement scheme it's 32% withholding. If you've left employment for other reasons, they need to work it out at a marginal tax rate.
Unused leave payments for continuing employees are calculated using the tax table for back payments, commissions, bonuses and similar payments. They can choose method A or method B to work out the withholding rate.
If you look at this and don't think it's right, have a chat with your employer. Unfortunately they can't re-imburse you if there's been a mistake, but they can report it to us so we can set things straight when you lodge your tax return.
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