Medicare levy adjustment monthly withholding table
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1 Pay as you go (PAYG) withholding NAT 0 Medicare levy adjustment monthly withholding table This table should be read with the withholding table (NAT 007) and the Medicare levy variation declaration (NAT 099). FOR PAYMENTS MADE ON OR AFTER JULY 0 From July 0, the temporary flood and cyclone reconstruction levy (flood levy) will no longer apply. WHO SHOULD USE THIS TABLE? You should use this table if you make payments to your payee on a monthly basis and they are entitled to a Medicare levy adjustment. For a full list of tax tables, visit our website at Alternatively, we have a calculator to help work out the correct amount of tax to withhold from payments to most payees. To access the calculator, visit our website at NAT 0-0.0
2 Can you use a formula? The Medicare levy adjustments shown in this table can be expressed in a mathematical form. If you have developed your own payroll software package, you will need to refer to Statement of formulas for calculating amounts to be withheld (NAT 00) available on our website at IS YOUR PAYEE ENTITLED TO A MEDICARE LEVY ADJUSTMENT? Your payee is entitled to an adjustment if they meet all of the following requirements: n they have provided you with a Medicare levy variation declaration (NAT 099) in which they claimed dependants answered yes to question 0 Is the combined weekly income of you and your spouse, or your income as a sole parent, less than the relevant amount in table on this page? n they have monthly of $,7 or more, but less than the corresponding amount in column A of table on this page for example, a payee who claims two dependent ren must have monthly of less than $,799 to be entitled to a Medicare levy adjustment. No Medicare levy is payable on monthly of less than $,7. If your payee claims more than 0 ren, the column A amount is $6,8, plus $9 for each claimed in excess of 0. Column B shows the values used in calculating adjustments for payees with more than five dependent ren. If your payee claims more than 0 dependent ren, the column B amount is $,. plus $0.9 for each in excess of 0. TABLE : Medicare levy adjustments Column A Column B $,0 Number of ren $,0 $,799 $,09 $,89 $,68 6 $,978 $,.08 7 $,7 $, $,68 $,7. 9 $,86 $, $6,8 $,. HOW TO WORK OUT WITHHOLDING AMOUNTS To workout the amount you need to withhold, you must: Use the withholding table (NAT 007) to find the monthly amount to withhold from your payee s, allowing for any tax offsets claimed. Reduce this amount by the amount of the Medicare levy adjustment, worked out as detailed on page. Where the adjustment equals or exceeds the amount obtained in step, the amount to be withheld is nil. For more information about how to use table, see How to work out the Medicare levy adjustment on page. Medicare levy adjustment monthly withholding table
3 HOW TO WORK OUT THE MEDICARE LEVY ADJUSTMENT How you work out the Medicare levy adjustment varies depending on the number of dependent ren your payee is claiming, see either: n Payee claiming spouse and/or one to five dependent ren below n Payee with more than five dependent ren below. Payee claiming spouse and/or one to five dependent ren Use the table on page to find your payee s monthly, or the nearest lower figure, in the column and the corresponding amount of Medicare levy adjustment in the appropriate column. EXAMPLE The payee has monthly of $,897.6 and is claiming four dependent ren on the Medicare levy variation declaration. Find $,897.6, or the closest lower amount (in this case $,89.67), in the column and find the corresponding Medicare levy adjustment of $7.00 from the ren column. Payee with more than five dependent ren How you work out the Medicare levy adjustment for a payee with more than five dependent ren varies depending on the monthly of your payee, see: n less than $,98 below n of $,98 or more but less than the column B amount that corresponds to the number of dependent ren claimed on this page n of $,98 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent ren claimed on this page. less than $,98 Use the ren column. Use the table beginning on page to find your payee s, or the nearest lower amount, in the column and find the corresponding amount of Medicare levy adjustment in the ren column. EXAMPLE The payee has monthly of $,779.8 and is claiming six dependent ren. Find $,779.8, or the nearest lower amount (in this case $,776.67), in the column and find the corresponding Medicare levy adjustment of $9.00 in the ren column. of $,98 or more but less than the column B amount that corresponds to the number of dependent ren claimed Round the monthly down to the next dollar amount. Take.% of that amount and round to the nearest dollar. EXAMPLE The payee has monthly of $,06.60 and is claiming seven dependent ren. Take.% of $,06.00 (the next lower dollar amount), this equals $60.9. The Medicare levy adjustment is $6, rounded to the nearest dollar. of $,98 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent ren claimed Complete steps below: Take.% of the relevant column B amount. Round the result to the nearest cent. Take 8.% of the difference between the monthly (round down to the next dollar amount) and the column B amount. Round the result to the nearest cent. Subtract the result of step from step. Round the result to the nearest dollar. EXAMPLE The payee has monthly of $,000.7 and is claiming eight dependent ren..% $,7. (column B amount for eight ren) = $ % ($,000 $,7.) = 8.% $66.7 = $.67 $7.00 $.67 = $8. $8.00 ($8. rounded to the nearest dollar). The Medicare levy adjustment is $8. PAYG WITHHOLDING PUBLICATIONS You can access all PAYG withholding tax tables and other PAYG withholding publications quickly and easily from our website at Copies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the following: n Tax file number declaration (NAT 09) n Withholding declaration (NAT 09). Medicare levy adjustment monthly withholding table
4 Medicare levy adjustment monthly withholding table
5 Medicare levy adjustment monthly withholding table
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8 AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA, 0 You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). PUBLISHED BY Australian Taxation Office, Canberra, May 0 JS 90 OUR COMMITMENT TO YOU We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. If you feel that this publication does not fully cover your circumstances, or you are unsure how it applies to you, you can seek further assistance from us. We regularly revise our publications to take account of any changes to the law, so make sure that you have the latest information. If you are unsure, you can check for more recent information on our website at or contact us. This publication was current at May 0. 8 Medicare levy adjustment monthly withholding table
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