If you’re a business or an employer, you can use PAYG withholding tax tables 2022. They can assist you in determining how much income tax to take out of your employees’ paychecks.
This ensures that you and your employees regularly contribute towards your end-of-year tax bill.
Tax tables provide withholding tax amounts and are a helpful tool for making PAYG taxes easy!
ATO provided tables for tax withholding 2022-23
These tables are prone to periodic review by ATO, and the most recent update was published on 13th October 2020.
No significant changes were made to tax rates for the financial years 2021-22 and 2022-23; hence, the tax tables 2022 stay the same.
Using the ATO Tax Tables 2022 to determine PAYG withholding tax is a straightforward process. Simply locate the relevant table that matches your pay run frequency, such as the weekly tax table for weekly payments. Then, find the corresponding amount in the first column that represents the money you plan to pay your employee. Next, refer to the second and third columns to determine the tax amount to withhold, taking into account whether your employee is claiming the tax-free threshold or not.
If you cannot locate or ascertain the precise earnings figure from the tables mentioned above, don’t worry. Our pay calculator is embedded with these tables to generate precise amounts in accordance with ATO formulas.
The tool is presented in a simplified and easily understandable format. Alternatively, you can check tax withheld calculator provided on the ATO site.
Using this tool might add a bit to your workload, but hey, at least you won’t have to deal with the headache of making incorrect payments ortrying to calculate using tax tables 2022 etc.
And let’s face it, making mistakes is way less funny than my attempts at humor. So, embrace the extra work and enjoy a good laugh instead!
Discover more about managing your tax affairs by visiting our comprehensive guide on obtaining a Tax File Number (TFN). Learn why having a TFN is essential and how to apply for one at https://mytaxdaily.com.au/tax-file-number/.
Frequently Asked Questions – Tax Tables
How to use ATO tax tables to determine PAYG withholding tax?
Using the PAYG tax tables is pretty simple. Just open up the table that matches your pay run situation – for example, if you pay your employees weekly, you’ll want to use the weekly tax table.
Then, find the amount of money you plan to pay your employee in the first column of the table.
Once you’ve found that, look in the second and third columns to see how much you need to withhold for tax – this will depend on whether your employee is claiming the tax-free threshold or not.
For example, let’s say you’re paying your employee Mike $1,250 per week. First, open the Weekly Tax Table (NAT 1005). Then you can either use the search function to find $1,250 in the table, or just scroll down to page 4 where you’ll find it in the middle of the page. If Mike claims the tax-free threshold, you’ll need to withhold $249 for tax. If he’s not claiming the tax-free threshold, you’ll need to withhold $370. So, out of the $1,250 you’re paying Mike, you’ll need to withhold and file either $249 or $370 for PAYG tax, depending on his situation. Then, you can pay him the rest of his wages – either $1,001.00 or $880.00, respectively.
Who can use tax tables?
Ideally, these tax tables are meant to be used by employers and businesses who make on a regular basis any of the following payments:
– Income-related payments – salaries, wages, allowances etc
– Income tax rates
– Medicare levy
– Study and training loan contribution
– Worker status either resident, non-resident or working holiday maker
– Registration of working holidaymakers and backpackers
– Tax-free threshold
– Tax offset entitlements
Why is there a difference in the tax amounts for different period lengths?
This assists businesses with avoiding complicated calculations, as ATO has provided appropriate breakdowns according to the payment needs of employers.
