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Employers Withholding to Much Tax from us

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I'm new

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Hello!
I am a dental nurse and I work for a very large Dental practice, who are known for paying their dentists at the very last possible minute, and paying suppliers at the very last possible minute (when lawyers get involved). I know this can be common practice to help keep the flow of money running through a business.
So here’s my problem. Our Payroll and HR department have taxed us $450 instead of the $192 (according to the marginal rates tax chart). Their reasoning being we will be better off around tax time. The Jobkeeper payment is to help us NOW. What I am wondering is can I find out if they are holding onto the tax withheld for cash flow purposes or have they paid it to the ATO straight away? Is there a term for this? They have been know to “super dump” where they won’t pay an employees super until the end of the year or an employee complains. Please help, there is a lot of tension right now, and very little transparency. They are telling us to be grateful to them for even getting the Jobkeeper (very grateful to the government, not to them). Thankyou.
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Devotee

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That is not right at all. They do not have the right to withhold extra tax from you to get you a bigger refund at tax time. Use the ATO's tax withholding calculator to check if they are withholding the right amount of tax for you.

Employers send withholding to the ATO at different times depending on their reporting cycle (eg. could be monthly quarterly etc). So they may still have the amounts withheld but may have sent it.

I would again ask your employer to make sure they withhold the right amount next time and tell them how much you expect it should be.  If they don't I would report them.

1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

That is not right at all. They do not have the right to withhold extra tax from you to get you a bigger refund at tax time. Use the ATO's tax withholding calculator to check if they are withholding the right amount of tax for you.

Employers send withholding to the ATO at different times depending on their reporting cycle (eg. could be monthly quarterly etc). So they may still have the amounts withheld but may have sent it.

I would again ask your employer to make sure they withhold the right amount next time and tell them how much you expect it should be.  If they don't I would report them.