Examples

The following examples use Weekly tax table – incorporating Medicare levy with and without leave loading (NAT 1005) effective from 1 July 2004. The calculations are made using column 3, with tax-free threshold and no leave loading.

<table cellspacing="0" cellpadding="0" style="border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2"><span style="font-family:'Times New Roman', serif; font-weight:bold"></span></p></td><td colspan="2" style="width:201.6pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2"><span style="font-family:'Times New Roman', serif; font-weight:bold">Example one</span></p></td><td style="width:34.2pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2"><span style="font-family:'Times New Roman', serif; font-weight:bold"></span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2"><span style="font-family:'Times New Roman', serif; font-weight:bold"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td colspan="3" style="width:235.8pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">An employee whose weekly wage for the current period is $383.75 receives an end of year bonus of $45.</span></p><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">As the bonus relates to the full year of work, it equates to 52 weekly pay periods.</span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:7pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td colspan="2" style="width:201.6pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:7pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:34.2pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:7pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:7pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:32.4pt; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif; font-weight:bold">Step</span></p></td><td style="width:169.2pt; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif; font-weight:bold">Method</span></p></td><td style="width:34.2pt; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif; font-weight:bold">Result</span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:32.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:169.2pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">Use the tax table to work out the withholding on $383.</span></p></td><td style="width:34.2pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">$52</span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:32.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">2</span></p></td><td style="width:169.2pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:19.8pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">Divide the bonus by the number of pay periods to which it relates ie $45 </span><span style="font-family:Symbol, serif"></span><span style="font-family:'Times New Roman', serif"> 52.</span></p></td><td style="width:34.2pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">$0.86</span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:32.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">3</span></p></td><td style="width:169.2pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:19.8pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">As the final amount is less than $1, according to the tax tables you do not need to withhold an amount. There is no need to calculate any further steps.</span></p></td><td style="width:34.2pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; text-align:center; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">$0</span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin-right:2.15pt; margin-left:2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:6.82pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td colspan="3" style="width:235.8pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif">The total withholding on the payment of normal weekly pay of $383 plus the bonus of $45 is $52 (ie $52 + $0).</span></p></td><td style="width:8.52pt; padding-top:2.15pt; padding-bottom:2.15pt; vertical-align:top"><p style="margin:3pt 2.15pt; widows:2; orphans:2; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr></tbody></table>