Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:3:p3
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 3 (pt 3/5)
Character Range: 91422–94079

to the daily earnings equivalent. Round the daily withholding amount to the nearest dollar.

If you pay your employees daily, rather than per performance, the amount to withhold (including reductions for tax offsets) should be worked out on a daily basis.

Example:
Sandra has two performances for the week, one on Thursday and one on Saturday. Sandra earns $500.35 for each performance. She has claimed the tax-free threshold.
    1. $500 × 2 = $1,000. Add 99 cents to the result = $1,000.99.
    2. $1,000.99 × 0.1512 − 64.3365 = $87.0132. Round to the nearest dollar = $87.
    3. $87 ÷ 2 = $43.50. Round to the nearest dollar = $44.

Therefore, the amount to withhold from each performance is $44. As there is only one performance per day, the daily withholding amount is the same as the per performance withholding amount.

Software

Payroll or accounting software written in accordance with the formulas in this schedule should be tested for accuracy against the Withholding lookup tool. The results obtained when using the coefficients in this schedule may differ slightly from the lookup tool. The differences result from the rounding of components. Withholding calculated using either method is accepted.

Tax file number (TFN) declarations

The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer-employee relationship, you must complete Tax file number declaration with all available details of the employee and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:
    * they have not quoted their TFN
    * they have not claimed an exemption from quoting their TFN
    * they have not advised you that they have applied for a TFN or have made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

If an employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.

Do not allow for