2014-2015 Changes to employee wages
- The ATO is updating its tax tables to help businesses work out their obligations to employees this tax time.
From 1 July 2014 businesses should use the ATO’s new tax tables to calculate how much to withhold from payments to their employees.
This year’s tax tables include the following key changes:
- the increase to Medicare Levy from 1.5 to 2 per cent
- the introduction of the Temporary Budget Repair Levy for employees earning more than $3,461 per week ($180,000 per year).
Employers should remember:
- to use the new tax tables from 1 July 2014 to calculate how much to withhold from payments to employees
- to withhold 49 per cent of any payment made to an employee if they have not provided their tax file number
- to withhold 49 per cent from any payment made to a business which supplies goods or services and does not quote their Australian business number.
- Employers affected by these changes and need the updated tax tables should visit ato.gov.au/taxtables