The 16 November 2020 deadline for updating the amount of tax you withhold from staff is fast approaching. Are you up to date?
The Australian Government’s recently introduced personal income tax cuts apply from 1 July 2020.
Businesses must make sure they are withholding the correct amount from salary or wages paid to employees for pay runs processed from 16 November onwards.
Any ‘over-withholding’ that occurred prior to updating your payroll software or processes will be included in an employee’s income tax assessment at the end of the year.
The Australian Tax Office says payroll software providers will be updating software to implement these tax rate changes and should update businesses when changes are made.
Tax tables have been updated on the ATO website to reflect the tax cuts.