The ATO has now updated tax withholding schedules to reflect the 2020–21 income year personal tax cuts.
Updated schedules are available at ato.gov.au/taxtables
Employers now need to adjust their payroll processes and systems for the tax cuts to be reflected in employee’s take-home pay. Employers need to ensure that the correct amount is being withheld from each employee’s salary or wages from no later than 16 November.
The implementation of these adjustments may be complicated and different for each employer.
Anything that is withheld from old scales will be taken into account in the individual’s end of year tax return.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au