New PAYG withholding rates released!

Withholding schedules updated and made available

As mentioned last week the newly introduced tax rates will require an update to withholding schedules.

These have now been released as a legislative instrument titled Taxation Administration Act Withholding Schedules No.2 2020.

It is noted that employers may need a short time to make the changes in their payroll processes and systems in order for the tax cuts to be reflected in people’s take home pay.

Please ensure you refer to the ATO tax rates schedule, or via our web page or using the link below to update your tax withheld for employees before the November pay run.

https://www.legislation.gov.au/Details/F2020L01297

https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC/questions#TWC/questions