A 45-year-old worker who has been employed for seven years is made redundant. The worker’s ETP is made up of:
The worker has received $72,000 in other taxable payments during the income year. What are the withholding rates for each component of the ETP?
|
Component |
Component subject to PAYG withholding |
Rate of withholding |
Cap to apply |
|---|---|---|---|
and Calculate the withholding amount. Please provided a detail calculation to understand the work done . Please make sure it based on Australia
| S.No | Particulars | Amount ($) |
| 1 | Add up all taxable payment (Excluding ETP) | 72000 |
| 2 | Subtract Step 1 amount from $180000 | 108000 |
| 3 | Determine the smallest cap by comparing result from step 2 against ETP cap amount of $205000 | 108000 |
| 4 | Witholding rate on the amount upto calculated whole of the income of $108000. Remembering worker is 45 years old | 32% |
|
Component |
Component subject to PAYG withholding |
Rate of withholding |
Cap to apply |
|---|---|---|---|
| Redundancy Pay(Assumed Non Genuine) | Upto ETP cap i.e. $180000 | 32% | Smallest of ETP Cap or Whole of the income cap i.e. $180000 |
| Unused Sick Leave | $180000 | 32% | $180000 |
| Payment in lieu of Notice | $180000 | 32% | $180000 |
| Unused Annual Leave | $180000 | 32% | $180000 |
| Unused Long Service | $180000 | 32% | $180000 |
| Gratuity | $180000 | 32% |
$180000 |
A 45-year-old worker who has been employed for seven years is made redundant. The worker’s ETP...
Calculate the withholding amount. In context of Australia . Please complete the step 7,8 any correction in between. redundancy pay – $48,200.00 unused sick leave – $3,250.80 payment in lieu of notice – $936.72 unused annual leave – $1,250.96 unused long service leave – $12,725.63 gratuity – $15,000.00 for seven years is made redundant salary - $72,000 Calculation: Step 1 : The redundancy payment and unused sick leave qualifies as genuine redundancy = $48,200.00 + $3,250.80 = $51,450.80 Step 2:...