November 9, 2020 | Warren Kruger | No Comments | Tax Tips For Business Owners
The ATO has now updated the tax withholding schedules to reflect the 2020/21 income year personal tax cuts – the updated schedules are available at ato.gov.au/taxtables.
The ATO has said that employers now need to make adjustments in their payroll processes and systems in order for the tax cuts to be reflected in employees’ take-home pay.
Employers must make sure they are withholding the correct amount from salary or wages paid to employees for any pay runs processed in their system from no later than 16 November onwards.
Employees should be aware that any withholding on the old scales will be taken into account in their tax return.