PAYG withholding

Share88

I got a question regarding PAYG withholding, just wondering if anyone can help me?
Say if your annual salary is 35000, how much tax should withheld per fortnightly? Could you please list out the calculation for me?
Underneath is my calculation, but it seems not correct comparing to Tax table.
Tax payable yearly: (35000-6000)*15% = 4350
medicare levy: 35000* 1.5% = 525
Low income tax offset: 1350-(35000-30000)*4% = 1150
Total tax payable yearly: 3725, fortnightly: 144.00
but  tax table is $164.00. Why?
Thanks!

Share88

Does anyone know the answer please? I am very curious to find out the reason. Thanks

Share88

If not considering low income tax offset, then tax withholding should be 187.50, still not 164.00.

didichan

You can find the tax tables in ATO' s website

http://www.ato.gov.au/businesses ... amp;alias=taxtables

http://www.ato.gov.au/scripts/taxcalc/calc_standard_hire.asp

Share88

I have visited those websites and know the correct amount which should be withheld. But I would like to find out how to manually work it out. Thanks!

Share88

I have done some search and found out some issues could affect the fortnightly withholding tax, like if there are 27 payrolls in a financial year, the figure will got discrepancy. It matches the discrpany last financial year, as it had 27 payrolls. But this financial year only has 26 payrolls, which means shouldn't have big discrepancy. Also, I think we should not take into account of low income tax offsets. So for example for salary 35000, tax $(35000-6000)*15%=4350, medicare levy 35000*1.5%=525, total taxpayable is $4875, fortnightly should be $187.50, but tax table is 164.00.
Anyone who knows the trick, please help me to solve it.
Thanks!

小熊猫

打电话给ato问问。

Share88

I have done some analysis. It seems that salary around $65K, the actual tax(manually work out) equals tax table's figure. Over 65K, tax table figure seems gradually increase comparing to actual tax ( manually work out), under 65K, tax table figure dicrease graudually comparing to actual tax. My explanation is poor people needs more money to spend, so tax office tends to lend some money out, but rich people can afford to lend some money to tax office. :)

mel_78

我理解是富的人，除了工资还有其他收入，当然ato要多要点先，你现在说的是光工资withhloding吧，穷人哪来这么多收入，ato总要退的，还不是先少收点啊

mel_78

USING FORMULAS
Withholding amounts shown in this table can be expressed in
a mathematical form.
If you have developed your own payroll software package, you
will need to use the PAYG withholding – Statement of formulas
for calculating amounts to be withheld (NAT 1004). A copy of
this schedule is available from www.ato.gov.au