Document ID: chunk:federal_register_of_legislation:F2024L00664:clause:5_12
Version: federal_register_of_legislation:F2024L00664
Segment Type: clause
Provision Reference: sch 5 cl 12
Character Range: 139261–141054

12    Work out the total PAYG withholding for this pay period by adding the withholding on the additional payment (step 10) to the withholding on the gross earnings (step 11).                                                                                                              $1,002
        = $780 + $222

Example 3 uses Schedule 1 - Statement of formulas for calculating amounts to be withheld (containing the amounts, formulas and procedures that were last updated on 1 July 2024). The calculations are made using scale 2, with tax-free threshold.
Example 4: Withholding using Method B(i) and Method B(ii)

Bradley, who has an accumulated Financial Supplement debt, is employed by Macropayers Pty Ltd. On 1 September 2024, he received a salary increase of $5 an hour, taking his gross monthly salary from $4,600 to $5,400. His employer agreed that the increase would be backdated to 1 August 2023 and paid at the end of September 2024.

This means that the back payment of salary covers 13 pay periods. The total back payment of salary is $10,400. To work out the total amount to be withheld from the back payment to Bradley, his employer will need to calculate the amount accrued in both:

    * the current financial year (2 pay periods from 1 July to 31 August 2024) = $1,600
    * a prior financial year (11 pay periods from 1 August 2023 to 30 June 2024) = $8,800.

You don't need to complete some steps if both Methods B(i) and (ii) are used in the calculations.

Method B(i) – PAYG withholding component – for Example 4
Step  Instruction                                                                                                                                                                                                                                  Result