Communication exercise – Tax deducted from my wages
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Communication exercise – Tax deducted from my wages

TASK 2 - Communication exercise – Tax deducted from my wages

In Question 29 of Task 1 you were asked to calculate the PAYG withholding to be deducted from Aaron’s weekly wages. This calculation takes into account many factors including Aaron’s personal circumstances and the nature of the payments he has received. In this task you are required to create a video recording of a role play of yourself providing an explanation to ”Aaron” (played by a friend or relative) of how the PAYG withholding amount is calculated. A smart phone can be used to make the recording (with audio).

Your video recording should 2 to 3 minutes in length and include the following:

Recording Checklist

Item

Covered?

Yes

No

A brief explanation of what PAYG withholding is.

Discuss what income amounts are included and what are not included when calculating PAYG withholding.

Explain the effects of residency and having a second job.

Explain how Aaron’s salary sacrifice arrangement has affected his PAYG withholding.

Aaron needs to ask at least two questions which require you to provide extra details during the discussions. *

You need to use clear, appropriate and professional language and tone throughout.

Suggested questions Aaron could ask may include:

Did I pay PAYG withholding on my car allowance?

Are all allowances exempt from PAYG withholding?

What is the tax free threshold?

What should I do if I get another job?

I have a HELP debt but I forgot to put it on my Employment Declaration, what should I do?

How does the salary sacrifice arrangement help me save tax?

Note: This is a simulated business meeting so you should not be just reading from information prepared earlier. You need to demonstrate active listening and communication skill.

Hint
Accounts and Finance (PAYG) Pay as you go refers to a withholding tax which needs you to pay incremental amounts of your commerce's revenue to the Australian Tax Office. These expenditures accrue towards your expected end of year revenue tax liability.  It is essential to finalize PAYG instalments before lodging the income tax...

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