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Second job tax

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If someone is employed on a traineeship and then paid as a subcontractor on top of that for extra hours by the same employer would you still be taxed at second job rate on the subcontractor money?
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ATO Certified

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Hi @Sammyeliz 

 

Your tax rate is based on your total income for the year.

 

Let's say your traineeship was paying $300 a week and you were paid an additional $500 per week as a "subcontractor". The total weekly earning is $800 - look up the weekly tax tables to find out how much total tax you should be paying (tax-free threshold amount) on that amount of earnings.

 

My guess is that the employer thinks they'll only have to pay super on the trainee amount, hence they've set you up like this, I won't go into any details but they'd be wrong in that estimation.

1 REPLY 1
Highlighted

Best answer

ATO Certified

Champion

Replies 0

Hi @Sammyeliz 

 

Your tax rate is based on your total income for the year.

 

Let's say your traineeship was paying $300 a week and you were paid an additional $500 per week as a "subcontractor". The total weekly earning is $800 - look up the weekly tax tables to find out how much total tax you should be paying (tax-free threshold amount) on that amount of earnings.

 

My guess is that the employer thinks they'll only have to pay super on the trainee amount, hence they've set you up like this, I won't go into any details but they'd be wrong in that estimation.