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Re: My employer withheld payg incorrectly i.e. weekly instead of fortnightly

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Newbie

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Replies 1

Hi,

 

I worked for an employer for 7 days. 5 days during 1 week and 2 days during the following week. I was full time but on a casual contract. The employer pays its employees fortnightly.

 

When I received my payslip it showed the pay period to be for 1 week (instead of fortnightly). This meant that my 7 days worked got lumped into 1 week and in this regard payg and HECS were deducted at a higher rate. FYI my payg was withheld using the tax tables (not casual tax tables). My issue is that I believe that I should have had my payg deducted over the fortnightly period as I worked over 2 weeks.

I have sent many emails and made various phone calls to the payroll coordinator for clarification and to request this to be rectified but they have all but ignored me. I did receive an email saying: 

 

"Because it was not a full fortnightly pay period you get taxed by the weekly tax tables. This is in line with the ATO guidelines to prevent the case of you being under taxed if you immediately went into other employment." 

 

I have looked everywhere for this "guideline" and have even called the ATO twice but still cannot find it.

 

Where do I stand?

 

This ocurred in the current financial year.

 

Look forward to your response.

 

Cheers

1 ACCEPTED SOLUTION

Accepted Solutions
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Most helpful response

Enthusiast

Replies 0

Hey,

 

Hopefully, you got paid the correct hourly rate then, and the only issue was that the tax was more than it needed to be, because if nothing works, you will end up getting it back... in a year or so (urk!)

 

Assuming there aren't different considerations to be made for casual employee's, because you tell us that they refer you to the ATO rather than an EA or contract, it seems like you are correct.

 

I don't have a solution for you, but I had something similar happen to me. My solution was fortuitous: I was told that I was incorrect and to refer to my financial advisor or the ATO website. I went higher up the foodchain and spoke to the company's tax people. I wasn't expecting much, but they immediately told the person that they were wrong and the policy was even clarified on the local intranet if a similar situation to mine was to happen again. I really wanted to laud it over the payroll officer, but at the end of the day, they are in charge of my pay and this is not the first time, nor will it be the last time, a payroll officer has got it wrong.

1 REPLY 1
Highlighted

Most helpful response

Enthusiast

Replies 0

Hey,

 

Hopefully, you got paid the correct hourly rate then, and the only issue was that the tax was more than it needed to be, because if nothing works, you will end up getting it back... in a year or so (urk!)

 

Assuming there aren't different considerations to be made for casual employee's, because you tell us that they refer you to the ATO rather than an EA or contract, it seems like you are correct.

 

I don't have a solution for you, but I had something similar happen to me. My solution was fortuitous: I was told that I was incorrect and to refer to my financial advisor or the ATO website. I went higher up the foodchain and spoke to the company's tax people. I wasn't expecting much, but they immediately told the person that they were wrong and the policy was even clarified on the local intranet if a similar situation to mine was to happen again. I really wanted to laud it over the payroll officer, but at the end of the day, they are in charge of my pay and this is not the first time, nor will it be the last time, a payroll officer has got it wrong.