How are bonus payments, which in my case, are paid separately to my normal salary, treated with regards to PAYG tax? Are they treated as separate payment and would be taxed at the standard tax scale. Or does the new varied tax scale also apply to the bonus payment.
Bonus Payments & Tax Variation
- Thread starter buzzlightyear
- Start date
Many thanks Tasman..
Agree with Tasman. Recently hubby put in a tax variation form and did not tick the box regarding bonus whethere it should be taxed at normal rate or varied rate. So, the ATO treated bonus as part of his normal income to be taxed at the varied rate. The end result was that more tax was taken out of his pay instead less! So, we wrote to the ATO and they said we should tick the box that bonus (estimated amount has to be declared) is to be taxed at normal rate (ie highest marginal rate) when it is paid. A new form has to be completed etc.
