Second Job

[ajackett110]

I am working two jobs at the moment. My highest earning job exceeds the threshold, so I have claimed it tax-free threshold for that job, but for my second job I can't claim it.

What would the tax rates for my second job be?

are they the same as those for the first job? eg. 17cents for the dollar?

I need some help here people, I posted a similar topic on the money board, but nobody posts there...

Cheers, Andrew

 

[Free Willy]

I'm pretty sure you will be taxed at either 51c or 49c in the dollar.
I'm not an accountant, but this does ring a bell.

 

[Darky]

Originally posted by Free Willy
I'm pretty sure you will be taxed at either 51c or 49c in the dollar.
I'm not an accountant, but this does ring a bell.

The peak tax rate is 47%, but that won't apply to the whole of the income earned on the second job.

Instead, the tax brackets will be at the same rates as normal taxes, except the first $115pw (approx) will be taxed, and all the subsequent tax brackets will kick in $115pw "earlier" than they would with no threshold.

 

[Nic]

What's a job.

 

[EssJayW]

I remember my 1st job, but am struggling to remember my 2nd.

 

[Tim56]

Originally posted by ajackett110
I am working two jobs at the moment. My highest earning job exceeds the threshold, so I have claimed it tax-free threshold for that job, but for my second job I can't claim it.

What would the tax rates for my second job be?

are they the same as those for the first job? eg. 17cents for the dollar?

I need some help here people, I posted a similar topic on the money board, but nobody posts there...

Cheers, Andrew

I believe that tax is payed on gross income, not per individual job. So, if you earned 20,000 in each you would pay the tax rate on 40,000.

 

[ajackett110]

Yeah, my gross income would be no more than $12,000 for the year with the 2 jobs, so I guess the first $6000 is not taxed, but the other $6000 is taxed at the normal rate???

 

[Darky]

Re: Re: Second Job

Originally posted by Tim56
I believe that tax is payed on gross income, not per individual job. So, if you earned 20,000 in each you would pay the tax rate on 40,000.

True to an extent. It works out as a percentage of overall wage at the end of the year, but when taxed on a weekly basis, the second job will still have a fair chunk taken out.

Originally posted by ajackett110
Yeah, my gross income would be no more than $12,000 for the year with the 2 jobs, so I guess the first $6000 is not taxed, but the other $6000 is taxed at the normal rate???

On the overall figure for the year, your first $6000 is tax-free, and from $6000-12000 will be taxed at 17% (approx $1000 tax).

If the two jobs are split as, say, one job at $150 a week, the other at 80 a week, then :

- if the first job has the tax threshold removed, you will pay 17% on the $150 job, and no tax on the $80 job = $ 25.50 tax per week.

- if the second job has the threshold removed, you will pay 17% on the $80 job, and 17% on $35 of the other job = $ 19.55 tax per week.

It really depends on how the two jobs are divided up, and also if you work the whole 52 weeks of a year.