Uncategorised

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

The superannuation Maximum Contribution Base is the upper earnings limit for each quarter that an employer is obliged to pay superannuation contributions. The Maximum Contributions Base for 2015/16 financial year is $50,810 per quarter —(this figure is indexed each year and provided by the ATO). An employer is obliged to pay superannuation contributions on ordinary time … 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

Q/  We have an employee who is terminating soon and he wants us to pay all of his termination pay directly to super.  I don’t think this is possible, but I’m not sure why. Can you assist please? A/ Clause 21 of the ATO’s Salary Sacrifice Ruling (see link below) allows that an employee can … Read more

Under the Fair Work Act, certain amounts can be withheld from an employee’s pay providing they meet the requirements of being “permitted deductions”. This part of the law is aimed at deductions like health insurance payments, union fees and similar. Such deductions can occur where the employee has made the request in writing and the … Read more