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Tax on overtime

2 Gorgeous Girls View Member Profile	21/02/2013, 06:48 PM Post #1
Posts: 1,211 Joined: 21-March 10
Advanced Member
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!

beljane View Member Profile	21/02/2013, 06:58 PM Post #2
Posts: 851 Joined: 2-December 05
Regular Member
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

2 Gorgeous Girls View Member Profile	21/02/2013, 07:02 PM Post #3
Posts: 1,211 Joined: 21-March 10
Advanced Member
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?

Lees75 View Member Profile	21/02/2013, 07:04 PM Post #4
Posts: 6,013 Joined: 3-June 04
I should be cleaning my house
Is the overtime putting you over the HECS threshold?

jmaz86 View Member Profile	21/02/2013, 07:04 PM Post #5
Posts: 349 Joined: 21-September 11
Member
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.

jmaz86 View Member Profile	21/02/2013, 07:05 PM Post #6
Posts: 349 Joined: 21-September 11
Member
QUOTE (Lees75 @ 21/02/2013, 08:04 PM) 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.

2 Gorgeous Girls View Member Profile	21/02/2013, 07:09 PM Post #7
Posts: 1,211 Joined: 21-March 10
Advanced Member
QUOTE (Lees75 @ 21/02/2013, 07:04 PM) Is the overtime putting you over the HECS threshold? Of course! I knew getting an education was a bad idea... Thank you so much!

Mrs Manager View Member Profile	21/02/2013, 07:15 PM Post #8
Posts: 708 Joined: 9-September 09
Regular Member
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

Alacritous~Andy View Member Profile	21/02/2013, 08:26 PM Post #9
Posts: 3,772 Joined: 16-January 08
Ignorance is not a point of view.
QUOTE (kate789 @ 21/02/2013, 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 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.

ceeshell View Member Profile	21/02/2013, 08:37 PM Post #10
Posts: 96 Joined: 21-May 09
New Member
QUOTE (Alacritous~Andy @ 21/02/2013, 09:26 PM) 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.

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