• How to use the tax withheld for individuals calculator

    Payments

    You should use this calculator if you make any of the following payments on a weekly, fortnightly, monthly or quarterly basis:

    • salary, wages, allowances and leave loading to employees
    • paid parental leave to an eligible worker director’s fees
    • salary and allowances to office holders (including members of parliament, statutory office holders, defence force members and police officers)
    • payments to labour hire workers payments to religious practitioners
    • government education or training payments
    • compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).

    Also use this calculator for payments made to foreign residents.

    If you make payments to shearers, workers in the horticultural industry, performing artists and those engaged on a daily or casual basis you are unable to use the tax withheld calculator, other tax tables apply for these workers.

    Payee name

    The payee name field is optional, but you may find it useful if you want to print the result.

    You can find the answers to the questions in this section of the tax withheld calculator from the payee section of your payee's:

    • Tax file number declaration
    • Withholding declaration.

    Medicare levy variation

    You can find the answers to the Medicare levy questions in the payee's Medicare levy variation declaration. If the payee has not completed a Medicare levy variation declaration, you can ignore the Medicare levy variation questions.

    Miscellaneous

    HELP, TSL, SSL or SFSS

    If your payee has a Higher Education Loan Program (HELP), Trade Support Loan, Student Start-up Loan or a Financial Supplement debt, you may need to withhold additional amounts from their payments. Your payee will need to notify you of this on their Tax file number declaration or Withholding declaration. The tax withheld calculator will include any additional amounts for HELP, TSL or SFSS in the withholding amount if they apply.

    Displaying the results

    When you have completed all questions, select the appropriate period of payment (weekly, fortnightly, monthly or quarterly) and select the Calculate button. The calculator will then display:

    • your payees gross earnings
    • the amount you must withhold
    • your payees net pay.

    We only use the details you enter for the calculation and they are not retained for any purpose by us.

    When there are 53 pay periods in a financial year

    In some years, you may pay your payees 53 times instead of the usual 52. As the weekly calculation in the tax withheld calculator is based on 52 pays, the extra pay may result in insufficient amounts being withheld. You should let your payees know when this occurs so if they are concerned about a shortfall, they can ask you to withhold the additional amount in the following table.

    53 pay periods

    Weekly earnings

    Additional withholding per week

    $725 to $1,524

    $3

    $1,525 to $3,449

    $4

    $3,450 and over

    $10

    When there are 27 pay periods in a financial year

    In some years, you may pay your payees 27 times instead of the usual 26. As the fortnightly calculation in the tax withheld calculator is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let payees know when this occurs so if they are concerned about a shortfall, they can ask you to withhold the additional amounts in the table below.

    27 pay periods

    Fortnightly earnings

    Additional withholding per fortnight

    $1,390 to $3,049

    $12

    $3,050 to $6,799

    $17

    $6,800 and over

    $42

    Leave loading changes

    If you pay leave loading as a lump sum, you now need to use Tax table for back payments, commissions, bonuses and similar payments to calculate withholding.

    If you pay leave loading on a pro rata basis, add the leave loading payment to the earnings for the period. The tax withheld calculator will calculate the withholding amount.

    Death of an employee

    Payments of salary, wages, commissions, bonuses or allowances made after the death of an employee are not subject to withholding. Even if the income was earned before the death of the payee, you are not required to withhold an amount.

    See also:

    Last modified: 31 Oct 2016QC 16944