When an employee is set up as a Working Holiday Maker, they are attached to the WHM (Working Holiday Maker) tax scale. This scale taxes employees based on their Year-to-Date earnings.
A Working Holiday Maker employee is taxed at the lowest tax bracket (15%) until they exceed $45,000 in Year-to-Date earnings. If they exceed $45,000 during a period, the next tax bracket will not apply until the next pay period. For more information, see example 2 in Schedule 15 – Tax table for working holiday makers | Australian Taxation Office.
If your employee is not being taxed at 15% and they are yet to exceed $45,000 Year-to-Date earnings it could be that the employee is attached to the 03 - Non Resident Tax Scale. To check the employee's Tax Scale go to Payroll, Maintenance, Employee, Employees. This will happen when the Payroll Company is not marked as Registered Employer for WHM. For more information on how to set up for Working Holiday Makers, including marking your Payroll Company as Registered, see article Working Holiday Maker Employee.
Working Holiday Maker (WHM) Tax is still calculated at 15% when payments exceed $45,000
In the current period a WHM employee exceeds $45,000, the tax is not calculated on the next tax bracket or at 32.50%?
Updated over a month ago