• Working out how much to withhold

    Follow the steps below to work out how much to withhold from weekly payments you make to workers who receive both CDEP and non-CDEP payments.

    If you don't pay your workers weekly, you will need to convert your worker's CDEP and non-CDEP payments into a weekly amount in order to calculate the withholding amount.

    Further Information

    Refer to Paying your workers fortnightly, monthly or quarterly to see how to convert payments into weekly amounts.

    End of further information

    Step

    Instructions

    1

    Add the gross amount of both CDEP and non-CDEP payments. Round this figure to the nearest dollar.

    2

    Use the Pay as you go (PAYG) withholding - Weekly tax table (NAT 1005) to find the worker's total weekly income in the 'weekly earnings' column (column 1). Select the corresponding column to find the correct amount to be withheld, as follows:

    • Column 2 if the worker is claiming the tax-free threshold and is entitled to leave loading.
    • Column 3 if the worker is claiming the tax-free threshold and is not entitled to leave loading.
    • Column 4 if the worker is not claiming the tax-free threshold.
     

    3

    Use the CDEP calculation table to find the worker's total weekly CDEP payment in column A (CDEP weekly earnings).

    4

    Use column B of the CDEP calculation table to find the applicable withholding reduction amount to the CDEP payment.

    5

    Subtract the amount in step 4 from step 2 to find the correct weekly amount to withhold.

    6

    If your pay period is fortnightly, monthly or quarterly you will need to convert the weekly amount to the relevant pay period. Refer to How much to withhold from fortnightly, monthly or quarterly payments.

    Example

    Albert's weekly wage is $430, made up of a $200 CDEP payment and a $230 non-CDEP payment. He has claimed the tax-free threshold on his Tax file number declaration and does not receive leave loading.

    Step 

    Instruction

    Result

    1

    Weekly gross amount: $200 + $230

    $430

    2

    Use the Pay as you go (PAYG) withholding - Weekly tax table (NAT 1005) to find the workers total weekly income in the 'weekly earnings' column (column 1).

    Total weekly earnings - $430

    In this example we use column 3 to work out the amount to withhold.

    $43

    3

    Using the CDEP calculation table find the weekly CDEP earnings in column A.

    $200

    4

    Using the CDEP calculation table find the withholding reduction amount in column B.

    $13

    5

    Subtract the amount in step 4 from step 2: $43 - $13

    $30

    The correct amount to withhold on Albert's gross payment of $430 is $30.

    Attention

    This example uses figures which are current for the 2008-09 financial year.

    End of attention
    Last modified: 22 Oct 2012QC 17754