Forum Discussion

Tanialmm's avatar
Tanialmm
Experienced Cover User
4 months ago

Is tax being taken correctly

Hi there, I had an employee question the tax being taken from their pay each week. Their tax code is Tax Free Threshold + STSL   On $1216  = total tax taken $237   However when I look this up ...
  • JulieM4710's avatar
    JulieM4710
    4 months ago

    I have the ATO app on my phone and it shows that a person earning $1216 for a week, claiming the tax free threshold and with a study or training support loan will now pay $237 in tax each week.

     

    Remember the govt changed the tax tables from 1 July and anyone earning over the tax free threshold will see an increase (of some description) in their take home pay.  The discrepancy you see may simply be because of the rounding process when calculating manually - the ATO may allow for error when using their excel worksheet. MYOB has updated the tax tables for they FY so they will be correct.

JulieM4710's avatar
JulieM4710
4 months ago

I have the ATO app on my phone and it shows that a person earning $1216 for a week, claiming the tax free threshold and with a study or training support loan will now pay $237 in tax each week.

 

Remember the govt changed the tax tables from 1 July and anyone earning over the tax free threshold will see an increase (of some description) in their take home pay.  The discrepancy you see may simply be because of the rounding process when calculating manually - the ATO may allow for error when using their excel worksheet. MYOB has updated the tax tables for they FY so they will be correct.

  • Tanialmm's avatar
    Tanialmm
    Experienced Cover User
    4 months ago

    Thanks Julie.

    My mistake - I did look up the weekly tax tables as of 01 July, however the STSL was still last year's!

    • JulieM4710's avatar
      JulieM4710
      4 months ago

      yes, that is a trap for unwary players! Well done and I trust the employee is reassured.

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