Question: Use the marginal rate calculation process in the table below to calculate the correct PAYG withholding amount to be withheld from her leave payments. Shelby

Use the marginal rate calculation process in the table below to calculate the correct PAYG withholding amount to be withheld from her leave payments.

Shelby has worked as a full time employee for Venture Consulting for 18 years. She has decided to move interstate and her final pay includes his unused leave entitlements. Calculate the correct PAYG amount to be withheld from Shelbys payment for unused leave on termination. Shelby is an Australian resident and claims the tax free threshold from this job. On 15th June 2021 Shelby is due to receive $3,180 in unused annual leave and $8,204 in unused long service leave. Her regular weekly wage payment is 1,390. Use the marginal rate calculation process in the table below to calculate the correct PAYG withholding amount to be withheld from her leave

Use the marginal rate calculation process in the table below to calculate

Calculation of tax on unused leave $ Step 1 - Use PAYG withholding tables to work out amount to withhold from normal gross pay Step 2 - Divide the total leave payment owed by pay periods in the year Step 3 - Disregard any cents Step 4 - Add amount in step 3 to normal gross earnings for a pay period Step 5 - Use PAYG withholding tables to work out tax on amount in Step 4 Step 6 - Subtract the amount at step 1 from the amount at step 5 Step 7 - Multiply the amount at Step 6 by the number of pay periods in the year Calculation of tax on unused leave $ Step 1 - Use PAYG withholding tables to work out amount to withhold from normal gross pay Step 2 - Divide the total leave payment owed by pay periods in the year Step 3 - Disregard any cents Step 4 - Add amount in step 3 to normal gross earnings for a pay period Step 5 - Use PAYG withholding tables to work out tax on amount in Step 4 Step 6 - Subtract the amount at step 1 from the amount at step 5 Step 7 - Multiply the amount at Step 6 by the number of pay periods in the year

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