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...
medicarelevy
tax
  • IanChait's avatar
    IanChait
    3 years ago

    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
3 years ago

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
    3 years ago

    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
      3 years ago

      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

      • lauracau's avatar
        lauracau
        Contributing User
        3 years ago

        Thanks again Lisa. Using the 'deduction' option looks good, but it doesn't allow me to select an appropriate category for STP reporting. I think I'll just have to manually add it in as Extra tax. 

         

        Cheers

        Laura

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