tax withheld when termination

lifengj

Need TZ help to calculate tax withheld when termination. contract stated that he has to give 2 weeks notice, but actually only one week has been given.

AL unused is $4021.67, total is 234.09 hrs. manager decide that pay this annula leave, but how to calculate tax? his salary is 17.18 per hour, and also worked 7.15 hrs in this pay run.

how to calculate tax? do not quite understand by ato website.

do i need to pay leave loading?

jiafen ci hou!
xie la!

[ 本帖最后由 lifengj 于 2009-6-11 16:38 编辑 ]

xingbu

7.15 hrs of work will be paid as normal. just make sure pay period is correct.
234.09 hrs un used AL will be put through termination pay. what system are you using for payroll? they system shold have pay code to process un used annual leave on termination and works out tax correctly.

SSUN

Up to $145k, the employee under age 55, 31.5% withholding tax

joybank886

我的理解是两张payslips。
一张是7.15hours的normal work。
另一张就是lump sum的termination pay。我不确定有没有leaving loading。但计算lump sum的tax应该是用marginal tax rate。也有用ls说的直接31.5%。
我们公司一般都是用marginal tax rate。

SkyLine

Tax to be withheld is on different formula if it comes out of unused AL (by legislation)

The formula is:
        AL Hours Left  x  Hourly Rate                                ---> Divided by number of Pay periods per annum =        (E)
-        Standard Pay     Tax to be Withheld                    =        (A)
-        <Standard Pay + (E) >   Tax to be Withheld            =        (B)
-        < (A) - (B) >        x number of Pay Periods            =        (T) Tax withheld
-        AL Hours Left  x Hourly Rate  -        (T)                    = Annual Leave payout