27 fortnightly or 53 weekly pays in a year

Feb

收到财务部邮件如下

Good afternoon colleagues,

Please read and respond as soon as possible regarding this important information regarding 2014/2015 financial year.

The following information is from the Australian Taxation Office web site:

Withholding for 27 fortnightly or 53 weekly pays in a year
In some income years, if you pay your payees:
o        fortnightly - they will have 27 pay days for the year instead of the usual 26
o        weekly - they will have 53 pay days for the year instead of the usual 52.
The withholding tax tables we publish are based on the normal number of pays in a year. Tax rates increase as taxable incomes increase. Therefore, the additional pay day will mean that amounts withheld from salary or wage payments made to many payees will not cover the amount payable when they lodge their tax returns.

What can be done?
Additional amounts can be withheld
Every taxpayer's circumstances are different, but those who normally expect to receive a small tax refund at the end of the year are likely to find that they owe tax to us because of the additional pay day. If any of your payees are concerned about the possible shortfall in amounts withheld, they can ask you to withhold additional amounts as shown below:

Fortnightly earnings*        Additional withholding per pay
$1,390 to $2,999        $12
$3,000 to $6,799        $16
$6,800 and over        $36
* These amounts are based on 2012-13 tax rates.

If you are considering extra tax per fortnight please advise me in writing (email is fine) the amount and the Payroll Officer will start withholding the extra from the first available pay of the 2015 financial year.  
Please note that by law we can’t give advice (other than the above table from the ATO), and we’re unable to do calculations based on different scenarios.


这是个啥情况？为啥要consier extra tax per fornight? 求讲解。。。。

JohnnySu

This is for you to accurately work out the PAYG Withholding amounts. It does not make any difference to your final tax position after everything is reconciled on your tax return.

easyuser

annual salary: $50k --26 pay runs  =$1923.08 per fortnightly; 27 pay runs taxable income=$51,923
if keep 27 pay runs each year, it means salary increase

However, 1.2014-2015=27 pays overstate taxable income$1923 * tax rate (31%+1.5%)=$ 624.98 extra payable to  ATO in year 2014-2015, weekly $312.5.
2.2015-2016 =25 pay runs taxable income $48,077 if:
1) tax rate will keep the same, tax liability less$ 624.98 or weekly $312.5;
2) tax rate is going up--- pay less tax : and
3) tax rate is dropping -- over payment  to ATO 2014-2015
Imagination you earn $175K per year, 2014-2015 pay special levy tax

easyuser

JohnnySu 发表于 2014-6-12 12:03
This is for you to accurately work out the PAYG Withholding amounts. It does not make any difference ...

You are right when the tax rates remain the same.

JohnnySu

easyuser 发表于 2014-6-12 15:04
You are right when the tax rates remain the same.

PAYGW is just pre-paid tax. It does not affect tax on income at all. It only affects the timing you pay tax.

ZMAccounting

就是问你是不是愿意每周或每fortnight多付一点tax，到年底报税的时候，你才有可能退回一点税，否则，每周或每fortnight按正常ATO发的tax table扣税的话，到年底可能要补税了。 不管现在交多少，最终的交税的数字是一样的，ATO会给你多退少补的。 ATO这样做，就是为了你报税的时候更happy，因为可以拿回来一些钱。