ATO Community

Re: TAX WITHHELD

Ask a question
Highlighted

Newbie

Views 1134

Replies 2

My friend's recent payslip was quite confusing. I am an accounting student, and I find these tax withheld amount a bit confusing. He has worked for 32 hours at a rate for 22.86 which is totalling up to $731.52 taxable income. The strange part of this is that the company has withheld $238 as tax and paid him through bank only $493.52 for the weekly payment. I was going through some payslip calculators and it showed me totally different value. I want someone to explain me this so i can let my friend know that this is the method.

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

ATO Certified

Anonymous

Replies 0

The amount of tax withheld has been at the " no tax-free threshold " rates, please refer here Weekly-tax-table-2017-18

 

These higher rates of withholding are used by employers when an employee either does not provide a withholding declaration at all or the employee has requested the " no tax free threshold " as they may have another job.

 

If your friend does not have another job, and they want the tax free threshold tax rates to apply, then they need to provide their employer with a correctly completed Withholding declaration so the correct amount of tax can be withheld.  Withholding-declaration

 

They can also contact the ATO if they need further assistance on 13 28 61

2 REPLIES 2
Highlighted

Best answer

ATO Certified

Anonymous

Replies 0

The amount of tax withheld has been at the " no tax-free threshold " rates, please refer here Weekly-tax-table-2017-18

 

These higher rates of withholding are used by employers when an employee either does not provide a withholding declaration at all or the employee has requested the " no tax free threshold " as they may have another job.

 

If your friend does not have another job, and they want the tax free threshold tax rates to apply, then they need to provide their employer with a correctly completed Withholding declaration so the correct amount of tax can be withheld.  Withholding-declaration

 

They can also contact the ATO if they need further assistance on 13 28 61

Megastar

Replies 0

Hi, 

It seems that the your friend is non resident as the PAYGW is deducted using the rates for non resident. You can use this calculator to compute the paygw ATO PAYG Calculator, just make sure to check non resident option

 

Hope it helps

Top Solution Authors