Jump to content

Tax on overtime


  • Please log in to reply
15 replies to this topic

#1 2 Gorgeous Girls

Posted 21 February 2013 - 06:48 PM

I'm hoping someone can help me out here before I make a fool of myself to payroll.

We have been flat out at work and so the past couple of pay cycles I have been doing overtime. Both times I seem to have been taxed really highly and I don't know why.

I normally get taxed according to the fortnightly tax tables, but with the overtime they don't seem to be using them. I'm getting taxed somewhere between the tax free threshold amount and the no tax free threshold amount.

Last fortnight I earned an extra $140 gross from overtime. I got an extra $14 in my pay packet after tax. I was effectively taxed $126 out of that $140. I have no idea why?

Google doesn't seem to be helping me either.

Combined with the fact that it pushes my gross earnings over the limit for SPP I have become one of those mythical creatures that is worse off for working more!!

Can anyone shed some light the reason for this taxing. I want to help the company out when needed but to lose money from doing overtime (which is paid at time and a half) is just preposterous!

#2 Iwantitall

Posted 21 February 2013 - 06:58 PM

If you earn that much extra every week would it put you in another tax category?  If not they should only be taxing you your normal percentage.  My Dh quite often does overtime (around $300 worth a FN). And still only gets taxed his normal rate as he is still in the same bracket ?  The next bracket starts at $80000 for him


#3 2 Gorgeous Girls

Posted 21 February 2013 - 07:02 PM

I thought about that but I am no where the next bracket of $80,000 and even if I was surely the tax tables would still account for that right?



#4 Lees75

Posted 21 February 2013 - 07:04 PM

Is the overtime putting you over the HECS threshold?

#5 jmaz86

Posted 21 February 2013 - 07:04 PM

Not an expert by any means, but if you have checked the fortnightly tax table against the gross amount and the amount of tax they are taking out does not seem correct to you then I would simply speak to payroll and ask them to clarify because you are confused.
I am sure they wont think any less of you, and perhaps if they are making an error it may not be affecting just you but other staff as well.


#6 jmaz86

Posted 21 February 2013 - 07:05 PM

QUOTE (Lees75 @ 21/02/2013, 08:04 PM) <{POST_SNAPBACK}>
Is the overtime putting you over the HECS threshold?


Didnt think of this...I used to get commission and because I had elected on my tax file dec for my employer to take out hecs I used to once a month get more taken out as I was being put over the threshold.

#7 2 Gorgeous Girls

Posted 21 February 2013 - 07:09 PM

QUOTE (Lees75 @ 21/02/2013, 07:04 PM) <{POST_SNAPBACK}>
Is the overtime putting you over the HECS threshold?


Of course! I knew getting an education was a bad idea...  wink.gif

Thank you so much!

#8 The Falcon

Posted 21 February 2013 - 07:15 PM

If it is only occasionaly overtime them think of it as savings... it would be unlikely to put you over the hecs threshold for the year so you will get a nice refund when you lodge your tax return  original.gif

#9 Alacritous~Andy

Posted 21 February 2013 - 08:26 PM

QUOTE (kate789 @ 21/02/2013, 07:15 PM) <{POST_SNAPBACK}>
If it is only occasionaly overtime them think of it as savings... it would be unlikely to put you over the hecs threshold for the year so you will get a nice refund when you lodge your tax return  original.gif


I'm sure someone will correct me if I'm wrong, but I don't think you get refunded HECS repayments at tax time, even if you are under the threshold.

#10 ceeshell

Posted 21 February 2013 - 08:37 PM

QUOTE (Alacritous~Andy @ 21/02/2013, 09:26 PM) <{POST_SNAPBACK}>
I'm sure someone will correct me if I'm wrong, but I don't think you get refunded HECS repayments at tax time, even if you are under the threshold.


You do. I have HECS taken out of my pay and get it back at tax time because I don't earn over the threshold annually.

#11 OscarAndTilly

Posted 22 February 2013 - 02:28 PM

Yes it will get refunded at tax time if your annual income isn't over the threshold

#12 niggles

Posted 22 February 2013 - 02:31 PM

This has happened to me many times. Payroll look at how much you earn in that fortnight and withhold an amount of tax as if you earnt that much all year. Because you then don't end up in the higher bracket, you get a tax return.

#13 niggles

Posted 22 February 2013 - 02:32 PM

I'm not sure if I've explained that well. What I mean is even though you won't end up earning over $80k (if that's the next bracket), if you earnt the overtime amount every fortnight then you would end up in that bracket. So for that pay, they take out tax at the higher rate.

#14 Let_it_Rain

Posted 22 February 2013 - 02:40 PM

QUOTE (OscarAndTilly @ 22/02/2013, 03:28 PM) <{POST_SNAPBACK}>
Yes it will get refunded at tax time if your annual income isn't over the threshold


But if you do end up going over the threshold you will probably end up with a bill.

Something to be cautious of if you do a lot of overtime or are borderline on the threshold.

#15 PrincessPeach

Posted 22 February 2013 - 02:41 PM

With the HECS, the extra amount your employer takes out each week does not get paid off your HECS Debt.

It simply allows for the fact that your annual HECS repayment amount is calculated when you lodge your income tax return. The HECS payments are not made until you lodge that tax return.

As for the original problem, they amount they should be withholding should be similar to what is on the fortnightly tax tables, so to me, holding that much of your overtime sounds extreme. However if they have held too much, you will get it back when you lodge your tax return.

#16 Let_it_Rain

Posted 22 February 2013 - 02:53 PM

The threshold is $49,096 and if you go over that you pay 4% of your total earnings in hecs.

The PP is correct that it isn't paid until you do your return, it is just withheld to alloow for it, but when you are put over by overtime they (unless you have asked them to take out additional) wont normally have deducted enough through the year to cover the 4%.

Edited by WinterDancesHere, 22 February 2013 - 02:55 PM.





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Tell us what you think

to WIN 1 of 2 $500 Coles/Myer gift cards

What not to say to a new mum

Some phrases just pop out before you really think about them, but there are some things you should try to not say to a new mum.

Why I'm glad to be an indulgent granny

The phone calls started a couple of weeks ago. At about 5.30 each evening - if I am lucky - I will be greeted by a sweet, excited voice declaring: "'Allo Annie".

Is this the worst relationship advice ever published?

You sometimes have to wonder whether relationship/sex advice from magazines is designed to help or humiliate.

How you talk to your baby now can impact social skills later

People used to think that social skills were something kids were born with, not taught.

Three truths about C-section mums

Lately I've been thinking about the caesarean stories and the brave women who birth their children with strength and beauty.

Scientists predict when you should start a family

Scientists have calculated at exactly what age you need to start trying to get pregnant to have the best chance of realising your dream. 

Differently abled child

When 'protecting' a child is really a cover for judgement

Why are people so concerned for this happy child and his mother?

When toddlers have strange obsessions

When it comes to two-year-olds and birthday cakes there are a few requests that are usually at the top of the list. But a cake featuring a local personal injury lawyer?

When Mama Bear strikes

When we become mums, our instinct to protect our children and keep them safe from harm is so strong we're often likened to a Mama Bear protecting her cubs.  

Immunity boosters for kids

There are no guaranteed ways to avoid the dreaded winter illnesses completely, but there are ways we can boost our children's immunity.

Mum shares portrait of her proudly breastfeeding three-year-old

Jade Beall usually chooses to breastfeed her son, now 3, in private. This week, however, she shared portraits of her breastfeeding her preschooler.

Dealing with a toddler's morning tantrums

Your schedule is not important to your two-year-old, and you cannot convince her otherwise. So what can you do?

Child in suitcase 'could have died eight years ago'

A child whose remains were dumped in a suitcase in the South Australian bush is believed to have been a girl aged between two-and-a-half to four.

MP breastfeeds baby during parliamentary session

An Argentinian mum and politician has caused a stir on social media after being filmed breastfeeding her baby.

My baby's first seizure

It was 1am on a cold winter's night when I woke suddenly to the screams of my 12-month-old son. Our lives were about to change forever.

Portable pools 'more dangerous than permanent ones'

Inflatable and portable children's pools may be required to be sold with compulsory fencing to prevent backyard drownings, with some experts even floating the idea of a ban.

Heartbreaking moment mum kisses her one-week-old goodbye

At 11.07am on April 2 this year, Sarah Marriott welcomed baby Sebastian into the world.

The amazing Tee Pee bed and kid-friendly Frankie Bunk bed

These kids' beds definitely fit the brief of providing personality and personal space for little people who are moving up in the world.

The funny things kids say when you're pregnant

Since becoming noticeably pregnant, my son has taken more of an interest in the sibling he'll soon have.

The real problem with having one child

In this age of political correctness, it seems the one subject still subject to discrimination is that of the Only Child.

Six-week-old baby found dead, believed stabbed

A neighbour heard a child screaming before a baby was found dead, believed to have been stabbed, in a house in Newcastle.

The fire hazard in more than 70,000 Australian homes

So far, 206 Samsung washing machines have caught fire and some have exploded. But many remain in people's homes.

How having a baby can bring on OCD

We all know that having a baby can turn your life upside down - and it can also bring a raft of new anxieties and worries.

IVF gender selection being considered for Australian parents

Couples using IVF may be able to choose the gender of their babies and women could be financially compensated for donating their eggs.

The best age to get married (according to the latest study)

Not too young, and not too old. That's reportedly the best age to get married. Not everyone agrees.

Get your FREE Baby & Toddler Show ticket!

Get your free ticket to the Sydney Essential Baby & Toddler Show for September 25-27 - register online now.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Tell us what you think

to WIN 1 of 2 $500 Coles/Myer gift cards

Why I'm choosing to be a single mother right from the start

I believe that you get out of families what you put into them, and I will give mine my all.

Mother and baby units are a necessity for mental health, not a luxury

I have had two postnatal psychotic episodes. The first when my eldest child was six weeks old, and another after my second child was born.

30 French baby names

French names are always in fashion, but a few have risen in popularity in recent years.

New mum's Spanish maternity nightmare

A British woman who gave birth in Spain has told of her ordeal after spending weeks trying to convince medics the baby girl was hers.

Preparing Rover to be a good dog with baby

Some friends of ours say that it's dangerous to have a dog around a newborn and that we should start looking for a new home for him. Is it?

Company offers to ship working mums' breast milk home

First Apple and Facebook announced they would pay $20,000 towards the cost of their female employees freezing their eggs, now IBM in the US has come up with an innovative new policy aimed at retaining female employees.

Prince William speaks of his pride at wife Kate and 'little joy of heaven' Charlotte

The Duke of Cambridge opened up about family life and his plans for the future in an interview to mark his first day as an air ambulance pilot.

'Glowing' eye saves baby Mason's life

A simple photo taken in front of an evening fire gave new mother Sarah Bowers the power to save her baby's life. 

Parenting and decision overload

Of all the advice people told me before having a baby, no one warned me about the amount of decisions involved.

Proof that toddlers can't be left unsupervised - ever

Parents of toddlers all know the moment when realise your child is being suspiciously quiet. It can only mean one thing - trouble!

Meet Jeremy Ryan, The Voice contestant with seven kids

If you have trouble recalling the ages of Jeremy Ryan's seven children on The Voice, you're not alone. So does he.

Baby's adorable reaction to wearing glasses for the first time

Getting glasses can be a formative moment in a person's life.

Police officer buys supplies for family after mum of six caught shoplifting

When a mum of six was caught shoplifting nappies, clothes and shoes for her kids, the last thing she expected was for a stranger to pay for her haul.

Why pregnant women on antidepressants shouldn’t panic about birth defect claims

The risk of having uncontrolled depression is far greater than the small increased risk of birth defects that may be associated with specific antidepressants.

Arrests made over children's birthday party brawl

Police have raided properties and arrested a number of people over a brawl at a child's birthday party at a play centre in Sydney's west.

Family shares awesome drone baby announcement

Looking for a creative way to share some big news? Look to the skies, like this family did.

Young warrior Owen defies doctors' predictions

Little Owen DiCandilo's name means "young warrior", and it's a description that perfectly fits the inspiring 18-month-old

Advice for dads: when to approach your wife for sex

The exhaustion that comes with caring for young children often means romance between parents becomes a thing of the past.

I might be fat, but I don't need saving

I've been fat for pretty much most of life, besides a few crazy moments of being less-fat, but for the most part I've existed on this earth with a little more meat on my bones than desirable.

The rookie mistakes we make as parents

Since the dawn of civilisation, generation after generation of new parents have had to rely on instinct, trial and error - and sometimes get it wrong.

 

FREE TICKET

See Pinky McKay live in Sydney

Get your free ticket to The Essential Baby & Toddler Show and save $20 - register online now!

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.