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How much tax will i pay on christmas bonus.

Newbie

Views 828

Replies 2

Hi,

Working 35 hours per week and weekly gross pay is $1524.75, i salary sacrifice $307.28 of that and tax paid weekly is $237.

Can you tell me if i get a $500 bonus for christmas how much will i be taxed on that $500? The bonus is not for any one specific period just the 2020 year overall.

Thanks

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Cbah,

 

@PlainJayne is on the right track, however we have a schedule and formula specifically for back payments, commissions, bonuses, and similar payments which will help work out the exact amount better than the normal tax tables.

 

The short version is that it will get added to your gross taxable pay for the period, and taxed as though the payment were spread on that income for the full year, rather than the bulk one-off payment it is.

2 REPLIES 2

Enthusiast

Replies 0

You can use these tables to work it out https://www.ato.gov.au/rates/tax-tables/

Most helpful response

ATO Community Support

Replies 0

Hi @Cbah,

 

@PlainJayne is on the right track, however we have a schedule and formula specifically for back payments, commissions, bonuses, and similar payments which will help work out the exact amount better than the normal tax tables.

 

The short version is that it will get added to your gross taxable pay for the period, and taxed as though the payment were spread on that income for the full year, rather than the bulk one-off payment it is.