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Employer not paying enough tax

Newbie

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Hi there, last year I was hit with a $500 tax debt and had my entire tax return taken from me. I paid the debt thinking it was a Centrelink debt. After paying it and becoming more curious as to why I was given this debt, I rang Centrelink and the ATO. Both agencies said they didn't have anything on file about a debt and we're just as confused as me. It wasn't until this year I was told the reason for my debt was because my employer (a giant fast food chain), didn't pay enough tax for 2017-2018 financial year. Therefore, I was ordered to pay back the Medicare Levy amount. I asked whose fault it was and the lady said it's no one's fault. How can this be? I have two questions: 1. Why was a uni student who worked minimum hours on minimum wage get hit with this debt? 2. How is this my fault? I don't deduct tax from my lay each week, my employer does this. Why wasn't my employer or payroll hit with the debt for not doing their role prooerly? I would love some answers because no one has been very clear with me.

Thanks.
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Taxicorn

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@Emiliac99 

 

Sorry to hear about your debt.

 

1. No idea as nobody knows how much you earned and how much tax was withheld.

2, It is your responsibility to ensure that the correct amount of tax has been withheld.

 

You can use the weekly/fortnightly tax tables or a web site that will automatically calculate it for you.

 

At the end of the day, you are taxed on your total taxable income, which includes payments from investments, Centrelink and from work.

 

Maybe work did take the correct amount out and you were also receiving income from Centrelink, which is not tax free.

 

You would've had to pay that amount anyway so think of it as receiving an interest free loan that you need to pay back at tax time.

 

 

 

1 REPLY 1
Highlighted

Most helpful response

Taxicorn

Replies 0

@Emiliac99 

 

Sorry to hear about your debt.

 

1. No idea as nobody knows how much you earned and how much tax was withheld.

2, It is your responsibility to ensure that the correct amount of tax has been withheld.

 

You can use the weekly/fortnightly tax tables or a web site that will automatically calculate it for you.

 

At the end of the day, you are taxed on your total taxable income, which includes payments from investments, Centrelink and from work.

 

Maybe work did take the correct amount out and you were also receiving income from Centrelink, which is not tax free.

 

You would've had to pay that amount anyway so think of it as receiving an interest free loan that you need to pay back at tax time.