ATO Australian Taxation Office recently had an announcement during the federal budget about the changes in the income tax threshold. So, all the withholding scheduled and tax tables changes are applied to all the payments made on and from 13 October 2020.
We know that companies are right now looking for simple solutions as the changes can overwhelm them with the extra workload. Well, let’s see if we can be of any help regarding it.
What is the deadline to implement these changes?
Any employees or payees who have troubles in implementing changes, they have time until 16 November 2020.
If you are an employee, business owner, or payer, you must have some questions in your mind and DHRP is right here to help you through them.
How do the updated tax tables will affect your businesses?
You can check the ATO tax tables on their official website. However, the general rule for taxpayers is based on aggregated turnover per financial or income year. Initially, it was as; if you are running a small company, 27.5% is the tax rate and the aggregated turnover on the year income should be less than $50 million. The rate is still the same for 2020, but it has increased the aggregated turnover to $50 million.
Also, the updated tax tables have changes a few things in age limits and early retirement schemes. As the genuine redundancy tax payments are tax-free until the employment of the employee. Moreover, it has announced the JobMaker Plan. It is a major recovery plan for Australia from the setbacks of COVID-19.
So, as a company owner, you will have to implement all these changes in your company and provide employment based on the reformed tax terms and conditions.
How can you calculate the tax?
You can find many calculators. However, as a business owner, you may need to go through other factors too. Check for the eligibility criteria and which legal entity you are. It depends on the tax rate varies as per the company’s position. So, it will change as per the size of your company. Therefore, while you are on it and trying to check the
Well, the above three questions are the common ones that almost everyone has in their mind after the announcement. But the ones that are looking for more information and want to do some extra digging to be clear about every change happening, they must visit the official website of the Australian taxation office and get the complete details to avoid any misconception at all.
How DHRP can help you?
DHRP updated the new PAYG rates in Dynamics 365 FO will be calculated automatically based on the date paid of any new pay run. You will be getting the updated cloud payroll and you can carry further operations smoothly. So, businesses will not need to worry about manual changes. If you haven’t used our integrated solutions with Dynamics 365 FO, it’s time to rethink about it and contact us to know more details on it.
