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mamatomia

Job Keeper -how it's taxed

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mamatomia

I am normally paid weekly and am currently on Jobkeeper. The business is paying the jobkeeper once a fortnight but taxing it fully within that one week. Is that how it should be done?

I have emailed payroll and am still waiting for an answer a week later. I also plan to call the ATO.

 

Thanks !

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born.a.girl

How much tax are they taking out?

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The new me

Be careful

 

Yes per the tax table they only need to take out xx

However depending on how much you already earned prior to going on job keeper your tax component may be higher.

 

Eg. If in 32% bracket you may end up with a tax bill at the end - make sure you save some and don't spend it

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qak

I can see the issue, but if in week 1 you get $0 and in week 2 you get $1500, and the normal payroll run is weekly, then I think it's correct to tax you at weekly rates, not fortnightly.

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born.a.girl

No, it should be fortnightly tax rates, otherwise the op is missing out on the second week's tax free threshhold built in to the tax scales.

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Literary Lemur

Is the tax amount the same percentage as you would normally see in your pay?

 

The amount of tax you pay over the month shouldn't change regardless of whether you are paid weekly, fortnightly or monthly.

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PrincessPeach

It should be taxed at your normal marginal rates.

 

 

 

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born.a.girl
Posted (edited)

Be careful

 

Yes per the tax table they only need to take out xx

However depending on how much you already earned prior to going on job keeper your tax component may be higher.

 

Eg. If in 32% bracket you may end up with a tax bill at the end - make sure you save some and don't spend it

 

 

Unless other things in their life have changed, they are more likely to get a refund if the jobkeeper is taxed correctly and is less than they were earning. A marginal tax is on your income above a certain level. The amount of their annual income above that level will reduce.

 

People only receiving jobkeeper are still eligible for the tax free threshhold each week.

Edited by born.a.girl

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Caribou

I do payroll at work. ATO advised us fortnightly.

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SplashingRainbows

Hi OP!

 

Are you working in the week you are paid the $1500? If your business pays weekly and you work one week on one week off, what they are doing sounds right.

 

If you’re not working at all most employers are paying $750/week which equals $1500/fortnight. The tax on both of those scenarios is the same.

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mamatomia

Thanks everyone !!

Your advice is greatly appreciated.From the replies it appears the tax amount is probably okay and eventually it all balances out at the end anyway.

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