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Two jobs: Taxes

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Hi, I currently have two jobs.

 

I started the first mid-2019 and the second late 2019, at the beginning it was my first job that I was planning to make more money in so I kept it as my tax-free threshold job, however, as time has passed I am actually making much more money in my second job. Both jobs are casual.

 

Question being, will I need to change my details with both employers re tex-free threshold? Or can I leave it as is?

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Taxicorn

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@lisnic 

 

You are taxed on your total taxable income for the financial year.

This is income from all sources.

The tax-free-threshold is generally per person not per job unless both jobs will earn, in total, below $20,000.

 

You may find, depending on how much you will earn in the second job, that they are not taking enough tax out.

This is because they do not know how much you are earning from your first job and any other sources.

They will start taxing you at 19 cents per dollar up to $37,000.

 

Depending on how much you earn from your first job, this may not be enough.

Imagine you earn $37,000 from your first job and tax you correctly.

Now your second job, really need to tax you at 32.5c per dollar up to $90,000 because this income is added to your $37,000

 

Tax Tables

 

 

 

 

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Best answer

ATO Certified

Taxicorn

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@lisnic 

 

You are taxed on your total taxable income for the financial year.

This is income from all sources.

The tax-free-threshold is generally per person not per job unless both jobs will earn, in total, below $20,000.

 

You may find, depending on how much you will earn in the second job, that they are not taking enough tax out.

This is because they do not know how much you are earning from your first job and any other sources.

They will start taxing you at 19 cents per dollar up to $37,000.

 

Depending on how much you earn from your first job, this may not be enough.

Imagine you earn $37,000 from your first job and tax you correctly.

Now your second job, really need to tax you at 32.5c per dollar up to $90,000 because this income is added to your $37,000

 

Tax Tables

 

 

 

 

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I'm new

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Thanks for the prompt reply! So at the end of the day, it doesn't matter necessarily which job I am taxed on, it just matters that I am paying enough tax?

 

A very rough example from my current fortnights' wages:

Job 1: Taxable income $500 tax: $0

Job 2: Taxable income $1, 100, tax: $360 - this makes me believe they are indeed taxing me at 32.5c/$1

 

So essentially not taking any other income into account, I am being taxed correctly and don't need to fuss about changing tax-free thresholds at either job?  

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Taxicorn

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@lisnic 

 

You can also check via the fortnightly tax tables

 

On this $500 (with tax-free threshold) = $0 tax and $1,100 (without tax free threshold) = $294 tax

 

Not sure where they would be getting $360 tax from?

As I said, all they can do is either:

 

(1) Tax you with the tax-free threshold.

(2) Tax you without the tax-free threshold (effectively 19c per dollar up to $37,000)

(3) Tax you at an amount that you calculate and fill in a tax withholding variation form.

 

If you are not planning on claiming any deductions then you could input your year to date income into this.

Then check how much tax you should have paid.