In: Finance
Describe how you would calculate and transcribe group tax amounts and make payments in accordance with taxation procedures. Ensure you provide an explanation on how to calculate PAYG withholding; the weekly tax table, and how to calculate tax offsets, FBT, HELP debt tax and financial supplement debt tax. (under topic manage payroll of leadership management.)
FBT refers to Fringe Benefit Tax. Fringe benefits refer to various non-wage compensation received by employees in addition to their wages. Fringe Benefit tax is the tax paid on these benefits.
HELP refers to Higher Education Loan Program. Here the government pays the educational course fees for the student and once the income of the person reaches a certain threshold, the amount starts getting deducted via the mode of taxes( atleast 2% of the annual income)
PAYG refers to Pay As You Go tax. Rates are given below:
Income thresholds | Rate | Tax payable on this income |
---|---|---|
$0 – $18,200 | 0% | Nil |
$18,201 – $37,000 | 19% | 19c for each $1 over $18,200 |
$37,001 – $90,000 | 32.5% | $3,572 plus 32.5% of amounts over $37,000 |
$90,001 – $180,000 | 37% | $20,797 plus 37% of amounts over $90,000 |
Financial Supplement Debt refers to financing offered by social security office of the Govt of Australia. This program has been stopped as of now.