Using tax tables

Another way to calculate the amount of tax to withhold is to use the tax tables on the ATO website. There are tables for weekly, fortnightly and monthly pay periods. You can also get tax tables for particular types of payments, such as payments made under a voluntary agreement.

If your payee, for example a contractor, has a voluntary agreement with you, use the information in the agreement to work out the amount to withhold.

To meet your tax and payment obligations, it is important you understand the relevant rate to pay your employees by referring to the relevant Award for your employee. The information on the Fair Work Australia website can help you meet your obligations as an employer.