How to work out withholding amountsHow to work out withholding amounts

How to work out withholding amounts

1. Add any allowances and irregular payments that are to be included in this week’s pay to the normal weekly earnings, ignoring any cents.
2. Find the payee’s total weekly earnings in column 1.
3. Use the appropriate column to find the correct amount to be withheld. If the payee is:
 claiming the tax-free threshold and is entitled to a leave loading, use column 2
 claiming the tax-free threshold and is not entitled to a leave loading, use column 3, or
 not claiming the tax-free threshold, whether or not entitled to a leave loading, use column 4.
4. Payees may anticipate their end-of-year entitlement to the FTB and/or a tax offset as a reduced rate of withholding by providing a Withholding declaration. Use the Ready reckoner for family tax benefit and tax offsets shown below to convert the payee’s estimate of their full-year entitlement into a weekly value. Then subtract this value from the withholding amount found in step 3.
5. If the payee is entitled to make an adjustment for the Medicare levy, subtract the value of the adjustment, determined from the PAYG withholding – Medicare levy adjustment weekly tax table (NAT 1010) from the amount found in step 4.
If the payee has advised you of a HECS, HELP or Financial Supplement debt, add the amount

determined from the PAYG withholding – HELP weekly tax table (NAT 2173) or PAYG withholding – SFSS weekly tax table (NAT 3306) to the amount you calculated in step 5.

Image unavailable in extracted text If you use column 4, or foreign resident tax rates, or no TFN has been provided, do not allow any FTB, tax offsets or Medicare levy adjustment.

Resident income tax rates from 1 July 2005

(not including Medicare levy)