The ATO has released its tax tables to help businesses work out their obligations to employees for 2014-15. From 1 July 2014 businesses should use the ATO’s new tax tables to calculate how much to withhold from payments to their employees.
This year’s tax tables include the following key changes:
- the increase to Medicare Levy from 1.5% to 2%
- the introduction of the Temporary Budget Repair Levy for employees earning more than $3,461 per week ($180,000 per year).
Employers also need to provide employees with a payment summary, covering payments made to employees in the 2013-14 financial year, no later than 14 July 2014 and lodge a PAYG payment summary annual report no later than 14 August 2014. It is important to provide all employees with payment summaries, even if no tax was withheld.
Employers with AUSkeys can lodge their payment summary annual report via the Business Portal.
Employers affected by these changes and who need the updated tax tables can obtain them here or can call the ATO on 1300 720 092.