Net Pay not adding up?

mich

I'd just like to confirm if I understand this properly as the math isnt adding up for me.

Is net pay the amount we are meant to pay the employee after we have deducted taxes, super and allowances? Because when I subtract these numbers on a calculator it doesnt seem to equal the net total and I'm confused why.

By my thinking it should be $5000 (gross) - tax (932) - super (525) which equals 3543. However the net total is saying $4068.00

What am I missing?

Rav

Hi Mich

The net total figure that you see on that screen is earnings - tax ie. $5000 - $932 = $4068.00

The super component has separate treatment and is a component that is calculated from the employee's earnings.

mich

So considering that super is sent off to their superfund as a separate transaction, does this mean that their take home pay would be $3543 (4068.00 - 525)?

I was understanding net pay to mean what the employees take home pay is after super, taxes etc have all been deducted.

mich

bump on this as I'm still having this issue and it's quite frustrating to deal with :(

Janine Attwood-Graham

Super doesn't come out of their pay - it is calculated on their pay and gets sent separately to their superfund - the company/firm/business pays super in addition to their salary. Only their tax comes off their pay in your instance above. So the net is correct.

mich

so in this case the employee takes home 4068 in their hand and then i pay the 525 separately to the superfund?

Janine Attwood-Graham

Yes, that's correct.

mich

Thankyou!! I thought it must have been something like that.