How To Give Your Employees More Cash In Hand Now At No Cost To You

HomeLearning CentreVideos & WebinarsXero Training Videos

Federal Budget benefit: How to give your employees a cash boost now.

The federal budget announced they would bring forward the reduction in the individual tax rates to 1 July 2020. In this video we show the "cash boost" given to employees earning less than $90,000 for the 4 months, July - October, adjusted in October.

Bringing forward the personal income tax plan will:
• Increase the top threshold of the 19% tax bracket to $45,000 (from $37,000)
• Increase the top threshold of the 32.5% tax bracket to $120,000 (from $90,000)

Employers have until mid-Nov to update their tax tables in their payroll. Xero updated this automatically on 22 October.

As the tax reduction applied from 1 July 2020 it means 'technically' employees have overpaid their taxes from 1 July until the tax tables are updated. They don't lose this amount as they will then get a refund when they lodge their 30 June 2021 tax return, but if you want to give your team a "cash boost" now and not to have to wait until 30 June 2021, you can adjust manually the PAYG withholding to update the tax withheld to the new lower tax rate. Here's how:


Please don't hesitate to contact the team at Smart Business Solutions on 03 5911 7000 if you require any assistance.

12 Aug '21

HOW TO record receipt of the State Government Business Grant


READ MORE READ MORE
18 Jan '21

XERO Me Payroll App


READ MORE READ MORE
26 Oct '20

HOW TO Give Your Employees a Cash Boost At No Cost To You


READ MORE READ MORE

Related News

21 Jun

Minimum Wage & Superannuation Increase Explained

There has been some confusion on what the minimum wage increase and superannuation increase means to small business employers.


READ MORE READ MORE
16 Jun

Market Volatility - June 2022

Many investors become concerned when volatility occurs in global financial markets – particularly about the impact on their superannuation and other investments. In times like these, it is important to understand the causes of market movements and how to minimise your risk.


READ MORE READ MORE
14 Jun

SMART Life - Issue 9 - Winter 2022

Prices on everyday essentials like food, petrol and medicine have increased significantly, impacting us all. Managing these price hikes is even more difficult when you’re living on a fixed income. We unpack how we got here and set out some things you can do to increase your buying power.


READ MORE READ MORE