Coaching Centre
Income and tax
Wages, salaries, overtime, commission and piecework, gross and net pay, taxable income, PAYG tax and tax refunds.
Ways to be paid
Ana earns $\$24$ an hour. She works $38$ normal hours and $4$ hours at time-and-a-half. Find her gross pay.
Income tax
Taxable income $=$ gross income $-$ deductions (allowable work expenses). Employers withhold tax from each pay under PAYG (pay as you go). At the end of the financial year, the tax owed is compared with what was withheld.
Sam's tax payable for the year is $\$12\,400$. His employer withheld $\$13\,000$. What happens?
$\$24$/h for $38$ hours plus $4$ hours at time-and-a-half. Gross pay?
$912 + 144$.
A salary of $\$78\,000$ per year is paid fortnightly. How much per fortnight?
$78\,000 \div 26$.
A salesperson earns $5\%$ commission on $\$12\,000$ of sales. Commission?
$0.05 \times 12\,000$.
Tax payable $\$12\,400$, PAYG withheld $\$13\,000$. Refund?
$13\,000 - 12\,400$.
Gross income $\$61\,200$, deductions $\$2700$. Taxable income?
$61\,200 - 2700$.
Double time at a normal rate of $\$20$/h. Hourly rate?
$2 \times 20$.
A worker is paid $\$1.50$ per box packed and packs $180$ boxes. Pay?
$1.5 \times 180$.
A salary of $\$66\,000$ per year is paid monthly. How much per month?
$66\,000 \div 12$.
New numbers every time. Keep going until you get five in a row.