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Effect on tax paid by employees in respect of their salary and wages - Cash Boost Payment

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Newbie

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Hi Team,

 

If company is getting credit for PAYG amount lodged in March BAS, then will the PAYG amount for employee need to be paid by them?

 

Eg: Company lodges $15,000 PAYGW in March 2020 quarter & hence gets $15,000 credit as initial cash boost. My questions is will this $15,000 credit to company have any impact on employee's individual tax return? If they conclude with a refund on their tax return for FY 2020, then will the refund be honored? I hope my question makes sense.

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Community Support

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Hi @focus247

 

Thanks for your post.

 

It won't affect the employee's tax return. Whether the employer was required to make the PAYG withholding payment to us or not doesn't change the fact that it was withheld from the employee's pay.

 

The employee's end of year income statement or PAYG payment summary will reflect the total tax withheld throughout the financial year (not the PAYG paid to us). This is the amount that they put on their tax return.

 

If the employee is entitled to a refund as a result of lodging their tax return, assuming that they have no debts that require payment, e.g. Centrelink, they will receive their refund as per normal.

 

For more information about boosting cash flow for employers, refer to our website.

 

Hope this helps.

 

Thanks, ChrisR

1 REPLY 1
Highlighted

Best answer

Community Support

Replies 0

Hi @focus247

 

Thanks for your post.

 

It won't affect the employee's tax return. Whether the employer was required to make the PAYG withholding payment to us or not doesn't change the fact that it was withheld from the employee's pay.

 

The employee's end of year income statement or PAYG payment summary will reflect the total tax withheld throughout the financial year (not the PAYG paid to us). This is the amount that they put on their tax return.

 

If the employee is entitled to a refund as a result of lodging their tax return, assuming that they have no debts that require payment, e.g. Centrelink, they will receive their refund as per normal.

 

For more information about boosting cash flow for employers, refer to our website.

 

Hope this helps.

 

Thanks, ChrisR