Forum Discussion

lauracau's avatar
lauracau
Contributing User
3 years ago

Medicare levy surcharge 1% - additional withholding

I have a new employee who has elected for an additional 1% tax withholding to cover any Medicare levy surcharge for this financial year. I don't see an option to do this in AccountRight. I know there's a field for Extra Tax as a $ value, but not extra tax as a %.

 

Please advise what I should do. Thanks!

 

I have attached a screenshot of the employee's Tax withholding and medicare levy variation selections.

  • Hi lauracau 

     

    I think you are now on the right track. Calculate the % of income, and then divide by number of pay periods and use the result in the extra tax field.

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User

    Hi 

     

    The usual Medicare levy is 2%, So i think that they are requesting a reduction in the levy 

    Select  Half medicare exemption in taxes

     

    Check that that is what the employee is after

     

    Hope that helps

     

    Lisa

     

     

    • lauracau's avatar
      lauracau
      Contributing User

      Thanks for your input, Lisa. But it's not a reduction request. They have elected for additional withholding as they do not have private health insurance and will be earning more than $90k. 

      • LRBooks61's avatar
        LRBooks61
        Ultimate Cover User

        I would set up a deduction as per the attached file

         

        Allocating to PAYG set up as 1% of gross

         

        Hope this is more useful

         

        Lisa