Schedule Sch 2 - Taxation Administration Act Withholding Schedules 2017 - Tax table for individuals employed in the horticultural or shearing industry | Zoe
Schedule 2 - Tax table for individuals employed in the horticultural or shearing industry
This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by sections 12-35 of Schedule 1 to the TAA.
Also, use this table if you make payments to individuals in the shearing industry such as shearers, crutchers, wool classers, cooks, shed hands and pressers who:
■ have given you a valid Tax file number declaration (NAT 3092) and have claimed the tax-free threshold
■ do not work for the same employer for a continuous period exceeding six months.
For all other circumstances use the relevant PAYG withholding weekly or fortnightly tax table.
If you employ individuals under the Seasonal labour mobility program this tax table does not apply. For these individuals you are required to withhold at 15%.
To work out the amount you need to withhold you must
Input your employees total earnings into the [Withholding look-up tool (XLSX, 56KB)](https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Schedule-2-horticultural-shearing-industry-tax-table-2017-18.xls).
Use the appropriate column to find the correct amount to withhold
- column 2 if the resident employee has given you a TFN
- column 3 if the resident employee has not given you a TFN
- column 4 if the foreign resident employee has given you a TFN
- column 5 if the foreign resident employee has not given you a TFN.
ExampleAn employee has earnings of $231.50.To work out the correct amount to withhold, ignore cents, input $231 into the Withholding look-up tool (XLSX, 56KB).If the employee is:■ a resident employee and has given you a TFN use column 2 to find the correct amount to withhold ($30)■ a resident employee and has not given you a TFN use column 3 to find the correct amount to withhold ($108)■ a foreign employee and has given you a TFN use column 4 to find the correct amount to withhold ($75)■ a foreign employee and has not given you a TFN use column 5 to find the correct amount to withhold ($103).
Resident employees
The standard rate of withholding of 13% applies if an employee has given you a valid TFN and you withhold amounts using the figures shown in column 2 of the Withholding look-up tool (XLSX, 56KB).
If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 3 of the Withholding look-up tool (XLSX, 56KB).
If your employee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.
Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.
Pay period
The rates in this tax table apply irrespective of the pay period.
The withholding amounts shown in this table can be expressed in mathematical form.
If you have developed your own payroll software package, you can use the formulas and coefficients outlined below.
■ y is the amount to be withheld expressed in dollars
■ x is earnings for the pay period, ignoring any cents
■ a is the value of the coefficient as shown in table A.
Table A: Resident or foreign resident rate
Resident – a
Foreign resident – a
Tax file number
0.13
0.325
No tax file number
0.47
0.45
The withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.
Software written in accordance with the formulas in this tax table should be tested for accuracy against the Withholding look-up tool (XLSX, 56KB). The results obtained when using the coefficients in this table may differ slightly from the Withholding look-up tool. The differences result from the rounding of components.
Tax file number declarations
The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.
If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.
You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:
If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.
Varying your PAYG withholding
If your employee believes that, for their circumstances, the amount you withhold will be too much, they may apply to us for a variation to reduce the amount of withholding.