From the 1st July 2011 the Federal Government has increased the amount you need to take out of your employees salaries /wages by 1% for the Flood levy.
Do my employees pay the flood levy?
Yes, employees (both resident and foreign residents) will pay the flood levy if they earn more than $50,000 in the 2011-12 income year.
Do I need to withhold extra tax for the flood levy?
The flood levy has been built in to the new tax tables which apply from 1 July 2011. Use the right table and your withholding will be correct.
Do I need to withhold the flood levy from lump sum payments?
Yes, you must withhold the flood levy from lump sum payments made in the 2011-12 income year if the payment is more than $50,000 and is taxable income.
Some lump sums, like employment termination payments (ETP) are concessionally taxed but are included in the employee’s taxable income.
No TFN withholding
If your employee has not quoted their TFN you must withhold at 46.5% from any payment made. Do NOT incorporate the flood levy in the withholding.
To qualify for an exemption from paying the flood levy employees:
- received the Australian Government Disaster Recovery Payment, or
were affected by an event that occurred during 2010-11 and was declared as a natural disaster under the Natural Disaster Relief and Recovery Arrangements, or - who are New Zealand citizens holding a special category visa, who are not eligible for the Australian Government Disaster Recovery Payment, and received an ex-gratia payment from Centrelink before 30 June 2012 for a natural disaster that occurred in the period 1 July 2010 to 30 June 2011.
For more information on the flood levy, wages and payroll contact the team at South East Access
South East Access
Upstairs Harbourside Complex
84 Princes Highway, Ulladulla, 2539
Phone: (02) 4454 4444
Fax: (02) 4454 0400
Office hours are 8:30 am to 5:30 pm
admin@southeastaccess.com.au
