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 Mrs Manager

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 WinterDancesHere

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 WinterDancesHere

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

 

Life with anxiety

At times, I feel pretty worthless. In those moments, all I want to do is curl up into a ball and hide in the dark. I can try to quiet my mind, but it won?t shut up.

IVF leaves woman pregnant with another couple's twins

An Italian woman has been told the twins she is three months pregnant with are not hers.

'My mother-in-law found out our baby's gender behind our backs'

My husband and I mutually decided that we didn?t want to know our baby's sex before the birth, but his mother couldn't handle that.

What you need for the 'fourth trimester'

In my opinion, the first three months after the birth are the most intense. Here's what got me through that time after welcoming my baby.

Weaning a toddler off a dummy: a 15-day plan

Weaning your child off the dummy can be a traumatic experience for both of you. Here are some tips to help you through.

Choosing to be a solo parent

Two women share their stories of longing for a baby so much that they each decided not to wait for a partner before becoming a mum.

Asphyxia link another piece of the SIDS puzzle

An Australian study has uncovered information which could lead to a better understanding of why babies die from Sudden Infant Death Syndrome.

Rescue dog Zoey and BFF Jasper star in adorable pics

Photographer, self-professed "crazy dog lady" and mum Grace Chon takes photos of rescue dog Zoey and her 10-month-old son Jasper together. The results are just too cute. See more on Instagram @thegracechon.

The ultimate travel stroller: the Mountain Buggy nano

We tried the Mountain Buggy nano and give it an enthusiastic thumbs up. As the ultimate travel stroller, it's practical, has great features, and looks fab, too.

Mum's heartbreak as son dies in road accident

Daly Thomas and her two young sons were walking home from church on Tuesday afternoon. Her youngest son never made it.

New Kate Spade baby bag designs

Don?t adjust your screen: this bright beauty is coming to you in full colour.

Easter gifts for babies, no chocolate in sight!

If this is your little one?s first Easter you might want to mark the occasion with something a little extra special. Here are 10 Easter gift ideas, which won't harm little teeth.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win the brand new phil&teds vibe

Check out the good looking new release of the Vibe 3 and the Verve 4-wheeler inline strollers. To celebrate their release, we have a Vibe with double kit to give away.

Baby sleep

From birth to one year and beyond, read about baby sleep, soothing techniques, routines, and sleep school experiences.

Easter gifts for babies, no chocolate in sight!

If this is your little one?s first Easter you might want to mark the occasion with something a little extra special. Here are 10 Easter gift ideas, which won't harm little teeth.

7 tips for a kid-free trip, not a guilt trip

Although I?m jumping out of my skin to take my child-free holiday, I?m dreading the goodbye. But I?m determined to make the most of it without tarnishing it with guilt or sadness about leaving the kids.

Itchibubs: clothes for babies and toddlers with eczema

Parents of children who suffer from eczema will know only too well the scratching that occurs around the clock. A new clothing range aims to help make everyone more comfortable.

Ear piercing: what age is best?

What is it that shapes our opinions on what?s an 'appropriate' age for our children to get their ears pierced? Parents share their views on how young is too young when it comes to piercing.

Caring for kids helps grandmothers stay mentally alert

Looking after grandchildren can help grandmothers ward off brain disease - but it's also possible to get too much of a good thing, researchers say.

Why I loved my third home water birth

After two water births at home, I was determined to give birth to my son the same way. I just hoped this birth would be quicker than my last two.

Revealed: 7 ways food marketers try to trick consumers

If you?re confused by food labels, you?re not alone. Next time you?re shopping for food, look out for these seven common labelling tricks.

'My mother-in-law found out our baby's gender behind our backs'

My husband and I mutually decided that we didn?t want to know our baby's sex before the birth, but his mother couldn't handle that.

 

Free Printable Activities

Keeping little hands busy

Free printable acitivity pages like colouring in, cutting, word finders, mazes, maths activities and puzzles.

 
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.