How can I help our employees avoid a tax bill for the upcoming financial year with the added pay period (53 weeks)?

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  • Updated 3 weeks ago
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Juli White

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Posted 3 weeks ago

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Larissa Hicks

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Hi Juli,

The PAYGW that is paid on the extra weeks wage should be sufficient, unless that extra pay week pushes them into the next tax bracket.

Hope this helps

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Bruce

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Larissa's comments are correct - and even if they do go into the next bracket as a result of the extra week the impost is likely to be marginal.

More importantly, it is an ATO requirement that you do not make any upward changes to the amount of PAYG W without getting explicit written approval from the employee concerned.

In the case of a downward variation in PAYG W there is an ATO form that the employee must submit and have approved by the ATO before you act on the request.
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John Graetz

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Juli.  The ATO covers this aspect on their website and gives guidance as to the extra amount of tax to withhold.  You can find that information here:
https://www.ato.gov.au/Rates/Weekly-tax-table/
John L G.