The Tax Tips Tuesday topic this week is on how changes to the Medicare Levy will impact how much you pay your employees.
Did you know that the Medicare Levy has increased from 1 July 2014 from 1.5% to 2%? The Medicare levy is an amount most taxpayers pay to the Australian Government and is based on a percentage of their taxable income. It is used to help fund the Medicare scheme that gives access to healthcare in Australia.
This means that for all your staff members, especially those that are full time and are probably on a recurring payment from your bank, you will need to make an adjustment.
While the numbers may not be significant, now is a good time to get the calculation right before it all starts to add up. And it helps to use some good accounting software to calculate payroll for your employees such as Xero or MYOB Essentials.
Tax Tips Tuesdays is brought to you with love from Nudge Accounting.