earning money ssts

ch4

allowable tax reduction

reduces taxable income

bonus

financial reward given to employees beyond their normal salary/wages

expense

a cost incurred

gross pay

an employee’s pay before taxes and reductions

Medicare levy

2% of taxable income

PAYG tax

gradual collection of taxes by the government

salary

pay that happens in fixed increments, usually monthly or annually

wage

pay based on the number of work hours completed

allowance

additional payments provided to employees to compensate for working costs or cover working conditions

commission

an amount paid to an employee based on how much they sell

GST

a tax sold on most goods and services sold in Australia

10%

what is the GST percentage?

income

total earnings

net pay

what an employee receieves after deductions and taxes

piecework

work paid at a fixed rate based on the amount producked, packed or picked

superannuation

a long-term investment used to save up for retirement

time and a half

1.5 times the regular pay rate

annual leave loading

an extra payment employees receieve when on annual leave

17.5%

what is the annual leave loading percentage in Australia?

double time

2x the normal pay rate

gross income

total earnings before any deductions

income tax

imposed tax on taxable income

overtime

hours worked outside the normal scheduled working hours

royalties

payments made for the use of rights, assets or property owned by a third party

tax refund

a tax repaid to you if you overpay your income tax

VAT

added tax on imported goods and services