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Sunday, 2 September 2012

The tax withheld calculator is now released

  1. To assist employers in withholding the correct amount of tax for the 2012/13 financial year, the Tax Office has now released the 2012/13 tax withheld calculator (TWC).
  2. To use the TWC, employers will require various employee details, including information provided on employee tax file number declaration, withholding declaration and Medicare levy variation declaration forms.
  3. To use the TWC online, employers can choose from a number of calculators, including:
    • Individual non business calculator;
    • Labour hire calculator; and
    • Voluntary agreement calculator.
  4. The associated Tax Office guide to the TWC and tax tables also clarifies how the TWC is used, including explanations on:
    • Payee details;
    • Medicare levy questions;
    • HELP or SFSS debts;
    • The display of results; and
    • What happens when there are 53 weekly pays or 27 fortnightly pays in a financial year.
  5. The guide also provides information about the definition of Australian resident, the Commissioner’s instalment rate (CIR), gross earnings, what happens when a TFN is not provided and how the tax-free threshold and various tax offsets are claimed.
  6. The TWC has been updated to reflect the ceasing of the temporary flood and cyclone reconstruction levy (flood levy) from July 1, 2012.
  7. To access the TWC, click here.

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