Full Time Employee Working holiday visa - Reckon Hosted
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?
Answers
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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?
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or do I just fill out this section and the rest is taken care of?
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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):
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I donβt 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
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Perfect, thanks for that. So what happens if they are over 45K? does the system work out what to do?
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@blairmuller Unfortunately no, it's not automatic π¬
You need to keep an eye on their earnings & update the rate when applicable π
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Unfortunately not automatic, those fields are information-only that flow through for STP π
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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
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