• How to work out the withholding amount

    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

    To work out the amount you need to withhold, you must:

    1. Input your employees total earnings into the Withholding look-up toolThis link opens in a new window.
    2. Use the appropriate column to find the correct amount to withhold
      • column 2 if the resident employee has given you a TFN
      • column 3 if the resident employee has not given you a TFN
      • column 4 if the foreign resident employee has given you a TFN
      • column 5 if the foreign resident employee has not given you a TFN.
       

    Example

    An employee has earnings of $180.40.

    Input $180 into the Withholding look-up tool.

    If the employee is:

    • a resident employee and claim the tax-free threshold use column 2 to find the correct amount to withhold ($23)
    • a resident employee and has not claimed the tax-free threshold use column 3 to find the correct amount to withhold ($83)
    • a foreign employee and has given you a TFN use column 4 to find the correct amount to withhold ($59)
    • a foreign employee and has not given you a TFN use column 5 to find the correct amount to withhold ($81).
    End of example
    Last modified: 14 Jun 2013QC 25926