First part-time job. Pay-Slips & Taxes

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  cintamami on 26/05/2013 - 07:31

  +2

  Hi there

  If your earning is irregular, as in, $200/week - $400/week depending on holiday season, your employee is obligated to withold some of your earning if you earn a certain amount / mth.

  Although your overall income is say, less than $20k, but you earn like $1k in the first month, but you earn 5k in 2nd month, on your 2nd month, your employer has to withhold some PAYG tax, unless you submit a form called PAYG variation request, which I think for your case isnt necessary.

  For tax return, put it this way, if you paid too much tax, you will get it back, if you havent paid enough tax, you have to top it up.

  So if you earn less than $20k in a year, and if you are studying accounting, I think there will be correlation between your work and study, hence you can claim your course fees as well, with that into consideration, I think you are well below the threshold. So you will get everything back at the end of the financial year when you do your tax return.

  Hope it helps.

• 

  noob999 on 26/05/2013 - 09:30

  Newsagency has come Tax Booklets with calculators

  OR go online

  http://www.ato.gov.au/scripts/taxcalc/calc_standard_hire.asp…

• 

  tonka on 26/05/2013 - 09:44

  +1

  As an individual the tax you must pay for the year is calculated by the ATO based on you whole years income when you do your tax return.

  An employer applies a scheduled amount weekly based on the amount you earn that week. This percentage assumes you will earn the same every pay. The weekly installment is set by the ATO and the employer isn't supposed to vary it or make assumptions about what you may earn for the whole year.

  No way to know what the bonus is for without knowing your occupation. eg I used to deliver for Pizza Hut, rather than adjust the rate when fuel went up they added a bonus.

  You should be able to claim educational expenses that relate to the type of work you are doing as long as they are in the same financial year. ie if the books you bought are a related topic then they helped you earn that income.

  Tax tables are below, don't forget you need to add 1.5% medicare levy.

  Taxable income

  0 - $18,200 Nil

  $18,201 - $37,000 19c for each $1 over $18,200

  $37,001 - $80,000 32.5c for each $1 over $37,000

  $80,001 - $180,000 37c for each $1 over $80,000

  $180,001 and over 45c for each $1 over $180,000

  • 

    MatrixM on 26/05/2013 - 21:29

    I work as a dental assistant and study medical science. I'm uncertain if my degree helped me with the job but I know some anatomy and physiology and biochem and such. Not much of it is applicable and the stuff that is I think I studied last year rather than this year. So I guess I can't really claim any of my books. Except perhaps the single exercise book I use to take notes on procedures and prep. :P

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  retiredfeline on 26/05/2013 - 10:54

  Bottom line is the PAYG deductions attempt to deduct tax at the appropriate rate for the whole tax year but in the end you'll owe them or they'll owe you a bit which will be sorted out when you do your return. So as an OzBargainer if they owe you money do it soon after the end of the FY otherwise wait until the last moment. :)

  • 

    MatrixM on 26/05/2013 - 21:26

    Right, thanks. :)
    But at my current rate, I shouldn't be having any PAYG deductions as $200 x 52 = a little over $10,000. Right? So I ought to email my employer about that. [They have my annual salary as over $33,000]
    But during the end of June, I WILL be taxed a little, and I should sort out getting that money back in July (though I have til November begins).
    What if my pay one week covers both June AND July? (i.e. the last week of june, first week of july) Do I include that week's pay in my tax return this year?

    Oh, just looked at my payslip. Turns out they have me down with 'Hesta Super Fund' for my Superannuation. I remember not putting down a super fund on the forms they had me fill out cos I thought it was full-time workers or people who aren't students. Is that possibly where the $4 PAYG is going?
    If it is, I may as well see if I can cancel that right?

    • 

      ozhunter on 26/05/2013 - 21:35

      But at my current rate, I shouldn't be having any PAYG deductions as $200 x 52 = a little over $10,000. Right? So I ought to email my employer about that

      Not sure what the current rate is but I think you can ask you employer to take more or less tax to a certain extent.

      What if my pay one week covers both June AND July?

      Your PAYG summary will have the amount you need to enter into your tax return. If you work the last few days in June but don't get paid till July you don't have to include that in your tax return as you haven't received your wages. It will go into next years tax return.

      • 

        MatrixM on 26/05/2013 - 21:48

        I meant rate of ~$200/wk as I said in the OP. my hourly rate is minimum wage, $16/h (that's how much the clinic pays part-time workers).

      • 

        ozhunter on 27/05/2013 - 00:38

        Ah I don't know why I put current rate, I meant percentage. I don't know what percentage of your weekly wage the employer takes out for tax but since you're under the $18,200 threshold you will receive it all back.

    • 

      retiredfeline on 26/05/2013 - 21:37

      Tax deductions and super deductions are separate things, don't get them confused.

      Employers are required to pay the SGC (Super Guarantee Charge), currently 9%. Your contribution rate is by default the same, 9%, but can be varied. People who are starting out in the workforce or paying a mortgage often prefer to lower their rate to use the money elsewhere.

      You also have a choice of which super fund you want to go with. If you didn't make this nomination when you started work, you can still sign up with your preferred fund and get the current fund to rollover your super. However Hesta is an industry fund and industry funds generally charge lower fees than retail funds.

      At your next job, remember to nominate your preferred fund. Otherwise you end up with a bunch of little super pools.

      Re: June/July, don't worry about it. You will get your payment summary from your employer showing how much you received during the FY, however the pay was distributed across the June/July line.

    • 

      tonka on 27/05/2013 - 12:11

      The annual salary your employer has recorded for you is usually just a label. Prob your hourly rate at the most common hours worked across all employees. This can affect your insurance premiums for your super though.

      Your employer can't vary your weekly tax without a written exemption from the ATO. This is something you would need to apply for with the ATO.

      You can see how much tax comes out for each pay on the table at this link.
      http://www.ato.gov.au/content/downloads/BUS00319019N10050512…

      If you have a HECS debt there may be a bit more come out. The $4PAYG is weird, that is the tax for $373 (with no HECS).

      I am a Payroll and Superannuation Manager. You usually have the right to Opt out have Super death and disability insurance. I have seen it go both ways, people opt out then die, people don't opt out then die. It's a personal choice. It can be a handy way to have insurance if your not yet at a point where you can afford disability insurance from your earnings.

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  gmail92 on 26/05/2013 - 14:04

  Slightly off-topic, but anyone have an idea if we can do anything about the unnecessary superannuation fees? I'm a casual working student, and at the end of the year the fees I'm being charged take a decent chunk of my total funds, due to a low total and lots of random fees that I'm not going to need anytime soon (like death insurance).

  • 

    gmail92 on 26/05/2013 - 14:30

    for instance, CBA offers a superannuation account with a $35 fee. Which is a lot less than what Im paying now to maintain my low balance.

    • 

      robbyjones on 26/05/2013 - 16:41

      You have the choice of which superannuation company you go with. You can open an accountwith your new super fund and fill in a form with you employer advising them of which company you want your super to go with. You can also fill in a form with your new super fund giving them permission to roll the super funds from any/all of the super funds you have and roll the money into your new, chosen super fund. Better in your pocket (erventually) than eroded by fees.

    • 

      danyool on 29/05/2013 - 18:25

      ING has a fee free super account for cash option (compared to say shares/balanced/whatever option) There was even a deal to get $50 to open that, but finished now. Although, long term, a balanced fund will probably be better than cash - no guarantees though!

  • 

    robbyjones on 26/05/2013 - 16:38

    There are some fees which you don't have any choice about however when it comes to insurance the funds tend to default to some insurance. You can write a letter (or email if they allow, but it generally has to be in writing) and cancel this insurance (generally death and/or TPD). I agree if you are a young person with no debt and no dependents then you probably don't need the insurance component.

  • 

    PissLUR on 27/05/2013 - 10:08

    Go with ing super.
    No fee.

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  Kevan2 on 27/05/2013 - 10:28

  +1

  Careful what is said here as advice on financial matters is. .,?.
  That said the questions asked. Tax if I earn below the threshold should my employer be taking tax out? As said before unless tax Dec form is given to employer then they are obliged to collect and pay the Tax on YOUR BEHALF. Good thing as it is a type of savings as you can get a refund as soon as you do tax return after 30/6 on line is easy.
  Super. As said before you can choose your own fund ,ing, BT, industry fund or any one of the many funds. Two types of fees running costs - can get no cost ones. Insurance cost - Question is if I am disabled do I want to rely on any one else like centrelink and nib is not yet working? Two ins. To look at disability insurance and income protection. Do your homework and look after yourself. Been there and it can work for you sh** happens every day.

  . And don't forget to look at what you need to do for the free super contribution from the goverment.

  • 

    danyool on 29/05/2013 - 18:36

    +2

    +1 for super co-contribution. Pretty good option for low income earners, if you've got a spare $1,000, put it into your super account and the government will put in $500. (or 50% of whatever you contribute upto maximum $500) Not as generous as the past few years, where it was even 150%, but still not a bad gift. Of course, your money is locked into super until retirement, but it should be worth a good chunk by then!

    http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/con…

    In other super matters, new this year, people on income less than $37,000 will get back the 15% contributions tax deducted from your super fund as a govt bonus upto max $500.

    http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=…