Calculating taxes is one of the not-so-glamorous aspects of starting a business. You have to determine how to calculate taxes and how much tax to withhold. Then you have to crunch the numbers and prepare your cash flow plan. It can be far from relaxing at times!
Fortunately for small business owners in Australia, the Australian Taxation Office (ATO) has made calculating taxes for employees simple with their readable tax tables. The monthly tax tables provided by the ATO help reduce the likelihood of making a common tax mistake. And, did we mention they’re free?
But if looking up tax tables is not your thing, using an accounting software like QuickBooks Payroll powered by Employment Hero can automatically calculate this with you. QuickBooks is up to date with tax rates and fully compliant with ATO requirements and most importantly, makes payroll a breeze.
In this article you will learn:
- Monthly Tax Table
- How to use the monthly tax table
- Example of a calculation using the ATO’s monthly tax table
- What is PAYG?
- What Are Your PAYG Obligations As An Employer?
- Employer Checklist For PAYG Tax Withholding
- ATO Tax Tables
- Important issues to note when using ATO tax tables
- Single Touch Payroll
- How Taxes Get Less Taxing