Tax Cuts Are Here!
October 2020 Tax Cuts Are Here! What do I need to do in my payroll?
The ATO has released the new tax tables based on the recently announced tax cuts. Most payroll software providers are currently working on implementing these into their system as soon as possible.
What if my software’s tax tables have not yet updated?
If your payroll provider has not yet implemented these, you do not need to manually adjust your pays to reflect these changes. You have until 16th November 2020 to reflect these changes in your payroll.
Do I need to back pay staff?
You do not need to back pay the tax adjustments prior to your tax tables being updated. Employees will receive their entitlement when the lodge their tax return for the 2020-21 year.
I use manual tax tables, what do I do?
If you use manual tax tables, you can download the latest version now from the ATO here: https://www.ato.gov.au/rates/tax-tables/?=top_10_rates