I have a new employee who has elected for an additional 1% tax withholding to cover any Medicare levy surcharge for this financial year. I don't see an option to do this in AccountRight. I know there's a field for Extra Tax as a $ value, but not extra tax as a %.
Please advise what I should do. Thanks!
I have attached a screenshot of the employee's Tax withholding and medicare levy variation selections.
Hi
The usual Medicare levy is 2%, So i think that they are requesting a reduction in the levy
Select Half medicare exemption in taxes
Check that that is what the employee is after
Hope that helps
Lisa
Thanks for your input, Lisa. But it's not a reduction request. They have elected for additional withholding as they do not have private health insurance and will be earning more than $90k.
I would set up a deduction as per the attached file
Allocating to PAYG set up as 1% of gross
Hope this is more useful
Lisa
Thanks again Lisa. Using the 'deduction' option looks good, but it doesn't allow me to select an appropriate category for STP reporting. I think I'll just have to manually add it in as Extra tax.
Cheers
Laura
