Forum Discussion

lauracau's avatar
lauracau
Contributing User
4 years ago
Solved

Medicare levy surcharge 1% - additional withholding

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...
medicarelevy
tax
  • IanChait's avatar
    IanChait
    4 years ago

    Hi lauracau 

     

    I think you are now on the right track. Calculate the % of income, and then divide by number of pay periods and use the result in the extra tax field.

LRBooks61's avatar
LRBooks61
Ultimate Cover User
4 years ago

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

 

 

lauracau's avatar
lauracau
Contributing User
4 years ago

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. 

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    4 years ago

    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

    • lauracau's avatar
      lauracau
      Contributing User
      4 years ago

      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

      • IanChait's avatar
        IanChait
        Ultimate Cover User
        4 years ago

        Hi lauracau 

         

        I think you are now on the right track. Calculate the % of income, and then divide by number of pay periods and use the result in the extra tax field.

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