Allow an opening Gross balance of earnings to be added for WHM
When employing someone on a WHM visa they pay a flat rate of 15% tax for the first $45,000, then 30% between $45,001 to $135,000 etc. PR currently calculates their tax based on their gross earnings with us, their current employer. It doesn't take into account any earnings with previous employers and so the employee can easily be under taxed by 50%. If an opening balance was entered, the YTD gross earnings for all employers would be taken into account and the increased tax rate applied more accurately.
For example, our employee had worked elsewhere and had gross earnings of $25K. She earned a further $45K with us. The system taxed all the $45K earned with us at 15% meaning she was under taxed by $3750. If an opening balance of $25K was entered, the first $20K with us would have been taxed at 15% and the remaining $25K would have been taxed correctly at 30%
Comments
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I might be a little dense but why are you concerning yourself with what an employee has earned with a completely different employer?
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Because if they have worked elsewhere before working for us, we land up under taxing them. They get a tax bill and come to us, as their last employer, wanting to know why we didn't tax them enough. Also, we want to look after our employees and ensure they don't have issues like this. Currently we are manually keeping track of their annual income and manually adjusting the tax to 30% when they exceed $45K.
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I still don't get it. If you to add a YTD for prior earnings that'll get sent in your stp and those earnings will be assigned to you, the current employer. How would that work?
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Sorry, I realise I'm coming off as snarky but I'm really not trying to. Just want to try and understand before I add my vote
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I'm suggesting it purely as an opening balance for the tax calculation, I'm not suggesting it's added to their reportable earnings with us.
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No worries, you made a fair point! Happy to clarify. Does it make more sense now?
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