Occasionally, an employee can decrease the amount of tax withheld from their salary. The employee must apply and obtain an approved withholding variation from the ATO in order to have their tax decreased in payroll. This is also known as a ‘downward variation’. What process must the employee follow to vary their PAYG? In order … Read more

What notice and evidence is required for leave taken in regard to jury duty? Employees must advise their employers of the period or expected period of leave as soon as possible. If an employee requests leave they need to provide evidence showing they attended jury selection or jury duty. How do we treat payment for … Read more

With Easter around the corner, it is a good time to go over the frequently asked questions that come up around public holidays. Which public holidays are applicable over the Easter Period?  Check your award or enterprise agreement in the first instance.  If not specified, you can refer to the Fair Work Ombudsman site or … Read more

Taxing a bonus can be quite confusing. There are several methods to tax a bonus. There is Method A and Method B (i) and (ii). Let’s look at Method A Method A is a simpler calculation and the most commonly used method. Bonuses are taxed at “marginal rates.” Marginal rates does not refer to the … Read more

Outstanding payments for time worked up to termination: All outstanding payments must be paid to an employee upon termination. Payments may include any outstanding ordinary time hours, overtime, allowances, leave taken, bonuses, shift loadings, etc, that would have been payable and treated as normal pay and taxed using the appropriate tax tables. Other payments can … Read more

How is it taxed? Where does it go on a payment summary? Is it superable? It is taxed using the ATO’s tax table for Backpay, bonuses, commissions and similar payments. You will use either Method A or B. The method for marginal rates tax is shown below: 1. Use the Tax Tables to work out … Read more