Q/ This financial year we will have 53 weekly (or 27 fortnightly) pay periods. What should we tell employees about this?
A/ Occasionally in your cycle of weekly or fortnightly pays, you may have a financial year that has 53 weeks or 27 fortnights instead of the “standard” 52 and 26 pays assumed in the rates in the PAYG Withholding Tax Tables. When this happens, there will be a shortfall in the PAYG withheld from employees’ wages over the year.
At the beginning of the financial years where this happens, employees should be made aware of the potential shortfall as they may wish to voluntarily increase the tax taken from their pay each week or fortnight instead of receiving a bill from the ATO after they do their tax return.
The following tables should be used when deciding how much extra tax to withhold for the year.
1. Where there are 53 weekly pays in a financial year (2013/2014)
|Weekly Earnings||Additional Withholding|
|$700 to $1,549||$3.00|
|$1,550 to $3,449||$4.00|
|$3,450 and over||$9.00|
2. Where there are 27 fortnightly pays in a financial year (2013/2014)
|Fortnightly Earnings||Additional Withholding|
|$1,390 to $2,999||$12.00|
|$3,000 to $6,799||$16.00|
|$6,800 and over||$36.00|