Hi everyone,
We have full time employee and they have asked if they are taxed differently if they are on a working holiday visa. Could somebody let me know and if so, what I need to do in reckon?
ok, I can see some options as below. I think this employee will earn more then 45K so what do I do to handle that?
or do I just fill out this section and the rest is taken care of?
Hi @blairmuller
This depends if you (as the employer) are registered as a "WHM Employer" - If so, you will tax them at 15% up to 45K, then increased rates thereafter, as per the WHM tax table. If not registered, you must tax them at 32.5% up to 120K, then use Foreign Resident rates.
You can find out more about this here: https://www.ato.gov.au/Business/Engaging-a-worker/In-detail/Employers-of-working-holiday-makers/
In RA, you need to select WHM & the applicable home country, regardless:
Under Taxes, if you're a registered employer, you'll select 8-NoTaxC & manually enter the applicable Tax % :
If NOT registered, you need to use 3-NonRes tax code (which will automatically apply foreign resident tax rates):
I don’t know anything more just found that on the ATO website. Maybe you could leave it at 15 until 45000 is reached and then change it
Perfect, thanks for that. So what happens if they are over 45K? does the system work out what to do?
@blairmuller Unfortunately no, it's not automatic 😬
You need to keep an eye on their earnings & update the rate when applicable 🙄
Unfortunately not automatic, those fields are information-only that flow through for STP 😔
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Ok, because the employee is on salary and his salary is in the 32.5% all you need to do is set the Tax% at 32.50% and it works it out correctly per month
