Weekly, fortnightly and monthly tax tables

ATO tax tables tell employers the correct amount of tax to withhold from each pay run (weekly, fortnightly, or monthly) based on the employee’s tax status and their gross pay.

Tax tables

The Australian Taxation Office (ATO) publishes a range of tax tables to help employers work out how much tax they need to withhold from employee payments and other payees. You can calculate withholding by using the following tax tables from the ATO: weekly tax table, fortnightly tax table, and monthly tax table.

When you’re in the middle of it, make sure you:

• Use the ATO’s online tax withheld calculator.
• Check pay frequency: weekly, fortnightly, or monthly.
• Double-check the pay amount, whether it’s just a week’s pay, weekly wages, or monthly salary (use gross pay, not net).
• Have all the correct information, including their TFN, withholding declaration, and whether the employee claims the tax free threshold.
• Be mindful of loans and levies like STSL (support loans) and their Medicare levy details, if appropriate.

The ATO updates the tax tables each year to ensure accurate withholding for payments made on a weekly basis, fortnightly, or monthly.

Weekly tax table

Use the ATO’s weekly tax table when employees are paid on a weekly pay cycle, which is this is the most common table for weekly earnings.

How weekly tax tables work:

1. Start with employee’s total weekly earnings (their gross pay).
2. Add any included items for that pay run. For example, taxable allowances or pro-rata leave loading.
3. Check their TFN and tax free threshold claim.
4. Find the nearest lower earnings row in the table.
5. Withhold the correct withholding amount.
6. Pay the employee with the following formula: Net pay = Gross pay − Tax withheld.

Also, be aware of a few weekly payroll traps, like: if your employee has a second job, which has tax implications for them; tax offsets, as some tables include info on claiming tax offsets; and foreign residents, as they have foreign resident rates.

Fortnightly tax table

Use the tax office’s fortnightly tax table when you run payroll each fortnight, using the same logic as for the weekly pay cycle. Here’s a quick fortnightly pay checklist to help you:

• Use fortnightly gross pay for that pay period.
• Include any regular payments and any in-period items, such as allowances or certain irregular payments in that pay.
• Apply the correct tax status.

If you pay prescribed employees with reduced Medicare levy, there’s a special no and half Medicare levy table. ‘No and half’ is just means a special exemption that either halves or eliminates the 2% medicare levy.

Monthly tax table

Finally, use the monthly tax table for monthly pay cycles. Be aware that monthly withholding will look larger than compare to other pay cycles, but that’s entirely normal because it’s a larger amount to pay. Some quick tips with a monthly pay checklist below:

• Use monthly gross pay (ignore cents if required).
• Check whether the employee has any other taxable income or wants extra withholding.
• Add the right loan and levy components.

There is also a Medicare levy adjustment monthly tax table for eligible employees.

Top tip: Using the wrong tax table skews the withholding calculation and can create big tax bills or refunds at year-end.

Which tax table should I use for tax-free threshold, second jobs and foreign residents?

Deciding which tax table to use is where most mistakes happen. Be mindful of the following:

• Tax free threshold: Most Australian residents can claim the tax-free threshold from one employer. That decision changes how much tax is calculated and withheld.
• Second job: A second job should usually be set to ‘no tax-free threshold’, which minimises under-withholding across multiple pays.
• Withholding declaration and TFN declaration: Employees use a TFN declaration so you can withhold correctly. They might also use a withholding declaration to vary withholding.
• Foreign residents: Foreign resident employees are withheld at foreign resident rates. They don’t use the same resident threshold info.

Medicare levy

Most standard tax tables factor in the Medicare levy, but some of your employees might need changes. Two common scenarios are:

• Medicare levy adjustments (eligible reductions).
• Medicare levy variation declaration (NAT 0929).

A variation can also help cover the Medicare levy surcharge, which changes the amount of tax withheld each pay.

Study and training support loans

If an employee has an STSL debt, withholding can increase — this includes the higher education loan program and other support loans. The ATO has its own specific STSL tables:

• Study and training support loans weekly tax table.
• STSL fortnightly tax table.
• STSL monthly tax table.

The above tables will help you calculate the loan component to withhold, but keep an eye on them as they can be updated during the financial year.

Payroll software & Single Touch Payroll

With dedicated payroll software, your business cuts out unnecessary and time-consuming manual admin work. It also handles single touch payroll (STP), which requires employers to report salary, wages, super and PAYG withholding to the ATO at the same time as each pay run.

So why exactly is STP so important? It guarantees:

• Correct tax status.
• Correct withhold from payment amounts.
• Good payroll records, every payday.

If your payroll has any element of complexity (e.g. multiple payees, special tables, frequent variations), payroll software is the best solution to stay compliant.