Question

1. Sue has two jobs for income year 2015-16. As a part time retail sales -assistant she earns $538.46 per fortnight. She also works in a restaurant earning $384.62 per fortnight. Sue claims the tax-free threshold from her retail employer and has no tax withheld but total tax withheld from restaurant employer during the year was $2,132.

Assuming that Sue does not have other income, calculate the amount of tax payable on her income when she lodges her return.

Answer 1

Answer:

Sue has worked for two jobs

1. As a part time retail sales - assistant (Income $538.46 per fortnight)

2. Works in restaurant (income $384.62 per fortnight)

A fortnight is equal to two weeks, now we required to convert the income of Sue from Fortnights to year

a) Income from part time job as retail sales assistant per fortnight = $538.46

Income per year = $538.46*52/2

= $13,999.96

b) Income from restaurant per fortnight = $384.62

Income per year = $384.62 *52/2

= $10,000.12

Total income = Income from part time job + Income from restaurant

= $13,999.96 + $10,000.12

= $ 24,000.08

Therefore total income of sue for the year is $24,000

Since there is no information about the married status and we can assume that sue was single.

The Taxable bracket rates for the year 2015 were as follows for single filers.

Rate	Single Filers
10%	$0 to $9,225
15%	$9,225 to $37,450
25%	$37,450 to $90,750
28%	$90,750 to $189,300
33%	$189,300 to $411,500
35%	$411,500 to $413,200
39.60%	$413,200+

By observing the above table we can know that sue was in the tax bracket of 15%, since her income for the year was $24,000.

Tax Liability

Income for the year = $24,000

Tax Liability = $24,000 * 15%

= $3,600

Since Sue claims the tax-free threshold from her retail employer and has no tax withheld but total tax withheld from restaurant employer during the year was $2,132.Hence we should reduce the tax withheld from the restaurant employer form the payment of tax liabilty.

Hence Net Tax Liability = $3,600 - $2,132

= $1,468

The net tax liability for sue for the year was $1,468