Hello ATO Community,
One of our employees did not have a TFN when they started in January. We process payroll monthly.
For January payroll, we withheld tax using the monthly tax table rate (say, $5,408)
For February payroll and after 28 days, we withheld tax using highest marginal rate as the employee still has not provided a valid TFN (say, $8,225)
For March payroll, employee now has a valid TFN and so we will withhold using the tax table rate again.
Is there any issue (potential large tax bill for the employee) if we were to back pay the excessive tax withheld from February payroll of $2,817 given Single Touch Reporting reports on a real-time basis?
We know it all will sort itself out with their tax return, but if we could fix up our employee sooner than later, it would be preferrable.
Many thanks.
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