• Examples

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Example 1

    You receive a class variation notice for all the workers of ABC Pty Ltd, where the prescribed rate of withholding has been varied to 15% of the gross payments listed as salary and wages.

    John, one of your payees, is paid a salary of $1,500 fortnightly.

    Applying the varied rate on the notice would result in a fortnightly withholding of $225 (that is, $1,500 x 0.15 = $225).

    Example 2

    You receive a variation notice for Tim, one of your payees. The prescribed rate of withholding has been varied to 18% of the gross payments listed as salary and overtime.

    During the year Tim received a bonus, but this had not been listed on the variation notice issued by us. The bonus payment relates to work performed in a single pay period. The bonus payment is not covered by the variation notice, so you will need to calculate the amount to withhold from the bonus payment separately using the Tax table for back payments, commissions, bonuses and similar payments.

    The payee is paid on a fortnightly basis:

    Payment type

    Gross amount
    $

    Salary

    5,000.00

    Overtime

    189.00

    Bonus

    1,000.00

    Total amount to be withheld for this payee is $1,319.00 and is calculated as follows:

    Payment type

    Gross amount
    $

    Withholding rate

    Amounts withheld
    $

    Salary

    5,000.00

    18%

    900.00

    Overtime

    189.00

    18%

    34.02

    Bonus

    1,000.00

    38.5%
    (scheduled rate)

    384.00

    Total

    6,189.00

     

    1,319.00

     

    End of example
      Last modified: 11 Mar 2015QC 17597