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Unwanted/incorrect 13th month

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Capricorn89 View Drop Down
Newbie
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Joined: 12/July/2018
Location: Australia
Posts: 2
  Quote Capricorn89 Quote  Post ReplyReply Direct Link To This Post Topic: Unwanted/incorrect 13th month
    Posted: 12/July/2018 at 12:55
Hi all

i'm a salaried employee, paid monthly. I used to get paid on the first day of the following month (in arrears). In April the company changed this (without my knowledge or consent) so that now my salary is paid on the last day of the current month.

The problem is that for the payment summary of the financial year, which I received a few days ago, there are 13 monthly payments included instead of 12 (I suspect the accountant made a mistake because of the change in days).

The result is that to the ATO it looks like I got paid more than what is specified in my contract, and that not enough PAYG tax has been withheld. Which means that even though I really didn't get any more salary in reality, I suddenly have to pay a substantial amount of extra tax. The reason being that this misplaced 13th month is taxed in a higher tax bracket...

My employer claims that it's all normal and that there are no mistakes and that I should "talk to my accountant".

Is this really normal? Are they allowed to just do this?

Eddy View Drop Down
Senior Member
Senior Member


Joined: 14/December/2012
Location: Australia
Posts: 161
  Quote Eddy Quote  Post ReplyReply Direct Link To This Post Posted: 12/July/2018 at 17:43
I don't think they did anything wrong even though it caused this unfortunate event with your tax. Like they said, you'll need to see what an accountant can do to stop you paying the extra tax.

Capricorn89 View Drop Down
Newbie
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Joined: 12/July/2018
Location: Australia
Posts: 2
  Quote Capricorn89 Quote  Post ReplyReply Direct Link To This Post Posted: 13/July/2018 at 11:37
Thanks Eddy! Will do.

Just an update: I called the ATO and they said that I should amend the tax return statement myself and include all payslips as proof of my position. I suppose one of their staff will look at it then.

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