Just wanting some clarification around tax on an employee's first pay if they started part way through a pay period.
For example an employee commences employment on 14 February 2020. The standard fortnightly pay period runs from 6 February 2020 to 19 February 2020. For this pay period the employee is therefore entitled to 4 days salary (14/2-19/2) - Monday-Friday days, out of possible 10 days.
Gross salary owed is $400 ($100 a day). As per standard tax tables (claiming tax free threshold, fortnightly pay) they are due to pay $0 tax. However as the employee started part pay is there a formula we should apply to ensure tax is calculated correctly.
i.e fortnightly salary would normally be $1000 (10 days x $100 a day). Tax on $1000 is $72. $72 / 10 days x 4 days = $28.8 (rounded to $29).