Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:3:p2
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 3 (pt 2/5)
Character Range: 88767–91670

offsets' in this schedule to work out the daily value of the amount claimed. Subtract the daily value of the tax offsets from the amount found in step 1.
Example:

An employee has claimed the tax-free threshold, earns $279.35 daily, works three performances this week and claims tax offsets of $500. Ignoring cents, input $279 into the Withholding lookup tool and refer to the corresponding amount to be withheld in column 2 of $21.00. Reduce this amount by the daily value of the tax offsets of $3.00 ($500 ÷ 52 ÷ 3 rounded to the nearest dollar).

The amount to withhold is $18.00 ($21.00 − $3.00).

Using a formula

The withholding amounts shown in this schedule can be expressed in a mathematical form.

If you have developed your own payroll or accounting software package, use the formulas and the coefficients outlined in Table A and Table B.

This section should be read with Schedule 1 - Statement of formulas for calculating amounts to be withheld.

The formulas comprise linear equations of the form y = ax − b where:
    * y is the weekly withholding amount expressed in dollars
    * x is the weekly earnings rounded down to whole dollars plus 99 cents, and
    * a and b are the values of the coefficient for the formulas as shown in tables A and B.

Table A: Employee has claimed the tax-free threshold

Coefficients where tax-free threshold claimed
Weekly earnings  a       b
  (x) less than
$451             -       -
$625             0.1280  57.8462
$781             0.2080  107.8462
$901             0.1440  57.8462
$1,081           0.1512  64.3365
$1,602           0.2582  180.0385
$3,245           0.2560  176.5769
$4,567           0.3120  358.3077
$4,567 & over    0.3760  650.6154

Table B: Employee has not claimed the tax-free threshold

Coefficients where tax-free threshold not claimed
Weekly earnings  a       b
  (x) less than
$187             0.1280  0.1280
$463             0.1694  7.7550
$644             0.1512  -0.6702
$1,165           0.2582  68.2367
$2,807           0.2560  65.7202
$4,129           0.3120  222.9510
$4,129 & over    0.3760  487.2587

To work out withholding amounts using the formulas, you must:

   1. Ignore any cents, multiply the per performance earnings by the number of performances for the week to derive the weekly equivalent. Add 99 cents to the result.

  2.     Calculate the weekly amount by applying the relevant coefficients from table A or B above, rounding to the nearest dollar.

  3.     Divide this amount by the number of performances for the week to work out the per performance withholding amount. Multiply this amount by the number of performances per day to convert it 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