Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:2:p2
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 2 (pt 2/3)
Character Range: 81583–84186

given you a TFN, use column 2 to find the correct amount to withhold ($30)
    * a resident employee and has not given you a TFN, use column 3 to find the correct amount to withhold ($108)
    * a foreign employee and has given you a TFN, use column 4 to find the correct amount to withhold ($69)
    * a foreign employee and has not given you a TFN, use column 5 to find the correct amount to withhold ($103).

Resident employees

The standard rate of withholding of 13% applies if an employee has given you a valid TFN and you withhold amounts using the figures shown in column 2 of the Withholding lookup tool.

If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 3 of the Withholding lookup tool.

When your employee is a foreign resident

If your employee has answered that they are a foreign resident for tax purposes on their Tax file number declaration, you will need to use the foreign resident tax rates.

There are two ways you can withhold from a foreign resident's earnings:
    * If they have given you a valid TFN, you must withhold amounts using the figures shown in column 4 of the Withholding lookup tool.
    * If they have not given you a valid TFN, you must withhold at 45% using the figures in column 5 of the Withholding lookup tool.

Pay period

The rates in this schedule apply irrespective of the pay period.

Using a formula

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

If you have developed your own payroll or accounting software package, use the formulas and coefficients outlined below.

The formulas comprise linear equations of the form y = ax, where:
    * y is the amount to be withheld expressed in dollars
    * x is earnings for the pay period, ignoring any cents
    * a is the value of the coefficient as shown in Table A.
Table A: Resident or foreign resident rate
Has the employee provided their TFN?  Resident (a)  Foreign resident (a)
Tax file number provided              0.13          0.30
Tax file number not provided          0.47          0.45

Rounding of withholding amounts

The withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent. Where an employee has not provided a TFN, ignore any cents in the result.

Software

Payroll or accounting software written in accordance with the formulas in this schedule should be tested for