Who Has to Pay the Medicare Levy? Updating Employee Tax Settings In Payroll When Circumstances Change matters because Australian residents for tax purposes are generally subject to the Medicare levy through the tax system unless they qualify for a Medicare levy reduction, Medicare levy exemption, or partial exemption. For employers, the practical risk is using…
Month: June 2026
When Is Salary Sacrifice Not Worth It for Your Staff? Red Flags Bookkeepers Can Spot in the Numbers
When is salary sacrifice not worth it for your staff? It is usually not worth it when the salary sacrifice arrangement leaves an employee with too little take home pay, creates unexpected tax implications, affects government benefits, or pushes super contributions too close to the concessional contributions cap. For bookkeepers, the warning signs often appear…
When New Employees Start Paying HECS: Onboarding Questions Bookkeepers Should Always Ask
When New Employees Start Paying HECS: Onboarding Questions Bookkeepers Should Always Ask is about collecting the right payroll details before the first pay run. A new employee may need extra amounts withheld if they have a Higher Education Loan Program (HELP) debt, Higher Education Contribution Scheme (HECS) debt, Student Start-up Loan, or other study and…
What Is Salary Packaging and How Does It Affect Your Payroll Bookkeeping?
What is salary packaging and how does it affect your payroll bookkeeping? Salary packaging is when an employee agrees to receive less income before tax in return for benefits of similar value, such as extra superannuation, a car, or other benefits allowed under the arrangement. For Australian Capital Territory (ACT) businesses, each salary packaging arrangement…
