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

 

Tot meets his heroes, falls apart with excitement

Two-year-old Quincy finished his potty training last week, and as part of his reward he was able to meet his idols.

Beautiful in our eyes: Georgia's story

I will never deny the fact that grief has a place when you give birth to a child who brings a set of circumstances very different to what you imagined. Because for nine months, I thought I knew my Georgie.

'It's been phenomenal': widower dad of quads thankful for support

There was nothing Erica and Carlos wanted more than a baby.

Vin Diesel names daughter after actor Paul Walker

The actor said there was "no other person" he was thinking about when he chose the name.

How midwives can help women who experience domestic violence

More than half of women who live with abusive partners experience violence during pregnancy.

Mum describes giving birth during Cyclone Pam

A new mother was told she must flee Port Vila hospital with her baby as Cyclone Pam bore down.

6 signs you're done having babies

There were a few signs I'm never going back to the land of maternity jeans, breast pumps and bassinets.

Marta Dusseldorp reveals breastfeeding cost her an acting job

Australian actress Marta Dusseldorp has revealed she was forced to withdraw from a Sydney Theatre Company production because a director did not approve of her breast feeding.

Female celebs (or their babies) with traditionally male names

Looking for a name that's a little bit different for a girl? Turn to names that have been traditionally used for males, as these celebs (or their parents) did.

'If you're anti-immunisation ... take a look at this picture of my son'

Greg Hughes is "an absolute shell of a man" as he and his wife Catherine struggle to come to terms with the loss of their newborn son Riley to whooping cough.

How an extrovert can raise an introvert

Introverts are often misunderstood as shy, and sometimes even rude. A timid child can be difficult to build rapport with, but it's important we nurture their sensitive natures.

Sheryl Sandberg's advice

'Choreplay': Help out at home to get more sex, Sandberg tells men

Forget foreplay. The new and improved route to intercourse is "choreplay" - it's good for your spouse, good for your house, and comes with the imprimatur of feminist du jour Sheryl Sandberg.

How to play with your baby

The first time your child learns a new skill at playtime is very exciting - for both you and your baby! Play is important to your child's development for a variety of reasons - here are some simple ideas for you to try at home.

I'm a single mother by choice

For me, being the best mother I can be means being a mum alone, at least for now. Thinking of my friends with inadequate partners, I wonder why more people don’t choose single motherhood.

Awkward wedding photos

Weird poses, surprise photobombs, bizarre editing: these are the wedding photos that should have never seen the light of day.

Four-week-old baby Riley Hughes dies of whooping cough

The mother of a four-week-old Perth baby who died after contracting whooping cough says her family has been left devastated by the loss of her "gorgeous, sweet" son.

Win a Ben & Holly's Little Kingdom prize pack

To celebrate the April 1 release of Holly's Magic Wand on DVD and Digital, we are giving away five DVD packs featuring the newest installment of Ben & Holly's Little Kingdom Holly's Magic Wand and many more hours of family entertainment! Enter Now!

Oh boy! Video shows family's reaction to baby surprise

Little Peyton Williams thought she was getting a baby sister named Charlee. But the two-year-old has had to settle for a doll dressed in pink after her baby "sister" turned out to be a boy.

How to help build up your baby's immune system

We all know that having a strong immune system is the best way to stay healthy – but what can we do to help it along?

'Nick, you need to call an ambulance': home birth mum's tragic death

A Melbourne mum who died after the home birth of her baby pleaded with her husband to call an ambulance because she felt she was going to die, the Victorian Coroners Court has heard.

When dads believe their baby doesn't 'like' them

Q: My two-month-old baby doesn't like me. He's perfectly content with my wife, but when I try to hold him, he gets upset and cries. I've backed off a little, thinking that he just needs a little time to get used to me, but that doesn't seem to be working. I'm starting to think I'm just not a very good dad. Is it too late for me to build a relationship with my baby?

When was the last time a stranger praised your parenting?

Wouldn’t it be great to get some nice feedback every now and then? After all, everyone likes to hear positive praise, particularly when it comes to parenting.

Special Ticket Offer, Save $8!

The Essential Baby & Toddler Show is back this April! Save $8 off the door price for a limited time only!

15 names on the verge of extinction

If you're looking to revive an older name, or don’t want anything near the top 1000 list, check out these rare monikers for your unique baby.

5 characteristics of great dads

It’s great to see a generation of dads who are more actively involved with caring, nurturing and loving their kids.

Why doesn't Australia have more breast milk banks?

When there’s no question that milk banks are important, why don’t we have more of them in Australia?

Carrie Bickmore announces birth of daughter

Television personality Carrie Bickmore has given birth to her second child.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Sign up to our 30 days of #PlayIQ challenge

Sign up to receive 30 amazing tips and ideas for play with baby during the month of April and submit a picture or tip on our social wall for a chance to win an amazing Fisher-Price prize pack.

Man faces jail after giving woman abortion pill smoothie

A Norwegian man is facing jail after putting abortion pills in his ex-girlfriend's smoothie, causing her to have a miscarriage.

'He's a blessing': family of baby born without eyes

Jordy Jackson was born without eyes. He has anophthalmia, which affects one in every 100,000 babies born.

Win one of 5 Cadbury Easter Hampers

With Easter fast approaching, Cadbury are giving away 5 Cadbury Easter Hampers. Enter Now!

Super fit model Sarah Stage defends her pregnancy body

Model Sarah Stage has defended her pregnancy body after critics claimed her slim figure at eight-and-a-half months pregnant wasn't "normal".

Win a Ben & Holly's Little Kingdom and Peppa Pig prize pack

To celebrate the April 1 release of Holly's Magic Wand on DVD and Digital, Essential Baby and Entertainment One are giving away five bumper DVD packs featuring the newest installment of Ben & Holly's Little Kingdom Holly's Magic Wand and many more hours of family entertainment! Enter Now!

Why I post breastfeeding photos online

I love to take pictures of my children. In some of the pictures, my younger son is nursing.

The day I broke my baby

There are things I wish I didn't know. I wish I didn't know that companies make tiny braces, small enough to hold necks no bigger than a wrist.

The place just for dads of multiples

When a couple discovers they're expecting multiples, the dad can sometimes be almost forgotten in all the excitement and preparation. But one group offers a space just for dads of twins and higher-order multiples.

Brave mum calls for domestic violence law reform

A brave mum of two has shared details of the harrowing attacks she suffered at the hands of her partner in a bid to help other victims of domestic violence.

Why I had the new test for Down syndrome

Early last year I turned 35, and having just found out I was pregnant, I opted to have the new test for Down syndrome.

Geeky baby gear

If your family is more into Star Wars, gaming and the periodic table than most, you might want to check out these geek-chic baby items.

2015: the year of the sheep

According to the Chinese zodiac, babies born in the year of the sheep are creative and enjoy spending quiet time with their own thoughts.

Breakthrough genetic testing now available in Australia

Pregnant women will for the first time have access to locally analysed, accurate, non-invasive pre-natal genetic testing when the first Australian clinic to offer the services opens its doors next week.

Grandbabies: the babies born looking old

Not a day under 65 and a lifetime of struggle! That's the look of these newborns, who look adorably older than their real age. Social networking site Reddit recently featured user submissions of adorable grandbabies, here are our favourites.

Family kicked off flight after toddler seatbelt drama

An entire family was kicked off a Cathay Pacific flight when a misbehaving toddler refused to put his seatbelt on.

Stolen baby found after 17 years

A baby stolen from her mother's arms shortly after birth has been found through an astonishing coincidence.

53 creative pregnancy announcements

Announcing that you're expecting can be a time to express your creativity, sense of humour and imagination. Check out how other parents and parents-to-be have broken the news to friends and family.

IKEA hacks for the nursery and kids' rooms

Are you one of those that know the whole IKEA catalogue by heart? Love their stuff but want to personalise it? Here's some inspiration to help you realise the potential of IKEA furniture and fittings.

36 baby names inspired by food and drinks

A French court may have ruled out Nutella as a baby name, but that doesn't have to stop you from taking inspiration from the supermarket (or bottle shop). See what parents in the US have chosen for their delicious little ones.

Clever breastfeeding products

Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.

 

Sign up now!

30 days of #PlayIQ challenge

Receive a daily email from Essential Baby during April with great play tips and ideas, then submit your baby at play photos to our Playwall, Instagram or Twitter for your chance to win.

 
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.