Skip to main content

Earnings used for Marginally Taxed payments

Using the correct taxing method for lump sum and termination payments.

Normal Gross Earnings - Schedule 7 payments (Terminations)

Normal Gross Earnings is the total earnings amount used by the Marginal Tax processor when calculating tax on termination payments.

The gross earnings amount is based on the full pay period immediately preceding the termination date. If the termination date falls exactly on the pay period end date, the current pay period is used instead.

The calculation includes all taxable Payment, Leave, and Termination pay items, less any pre-tax Superannuation or Deduction pay items.

Termination Date - 18/07/2025

Pay Period - 01/06/2025 - 30/06/2025

The total of $10500.33 taxable payment less the $500 pre-tax super pay items leaves an earnings amount of $10000.33

Date

Pay Item

Total

Monday 2 June 2025

Ordinary Time

$ 500.01

Tuesday 3 June 2025

Ordinary Time

$ 500.01

Wednesday 4 June 2025

Ordinary Time

$ 500.01

Thursday 5 June 2025

Ordinary Time

$ 500.01

Friday 6 June 2025

Ordinary Time

$ 500.01

Monday 9 June 2025

Ordinary Time

$ 500.01

Tuesday 10 June 2025

Ordinary Time

$ 500.01

Wednesday 11 June 2025

Ordinary Time

$ 500.01

Thursday 12 June 2025

Ordinary Time

$ 500.01

Friday 13 June 2025

Ordinary Time

$ 500.02

Monday 16 June 2025

Ordinary Time

$ 500.01

Tuesday 17 June 2025

Ordinary Time

$ 500.01

Wednesday 18 June 2025

Ordinary Time

$ 500.01

Thursday 19 June 2025

Ordinary Time

$ 500.01

Friday 20 June 2025

Ordinary Time

$ 500.02

Monday 23 June 2025

Ordinary Time

$ 500.02

Tuesday 24 June 2025

Ordinary Time

$ 500.02

Wednesday 25 June 2025

Ordinary Time

$ 500.02

Thursday 26 June 2025

Ordinary Time

$ 500.02

Friday 27 June 2025

Ordinary Time

$ 500.02

Monday 30June 2025

Ordinary Time

$ 500.02

Thursday 31 July 2025

Pre Tax Super Contribution

$ 500.00

Total Taxable Earnings

$ 10,000.33

Note: Any $0 gross pay periods will be skipped, and the system will go back further until it finds earnings.

Current Gross Earnings - Schedule 5 payments (Bonus / Commissions)

Current Gross Earnings is the total earnings amount used by the Marginal Tax processor when calculating tax on additional or ad hoc payments, such as bonuses and commissions.

The gross earnings amount is based on the pay period selected for processing the marginal payment.

The calculation includes all taxable Payment, Leave, and Termination pay items, less any pre-tax Superannuation or Deduction pay items.

Date

Pay Item

Total

Tuesday 1 July 2025

Ordinary Time

$ 456.53

Wednesday 2 July 2025

Ordinary Time

$ 456.53

Thursday 3 July 2025

Ordinary Time

$ 456.53

Friday 4 July 2025

Ordinary Time

$ 456.53

Monday 7 July 2025

Ordinary Time

$ 456.53

Tuesday 8 July 2025

Ordinary Time

$ 456.53

Wednesday 9 July 2025

Ordinary Time

$ 456.53

Thursday 10 July 2025

Ordinary Time

$ 456.53

Friday 11 July 2025

Ordinary Time

$ 456.53

Monday 14 July 2025

Ordinary Time

$ 456.54

Tuesday 15 July 2025

Ordinary Time

$ 456.54

Wednesday 16 July 2025

Ordinary Time

$ 456.54

Thursday 17 July 2025

Ordinary Time

$ 456.54

Friday 18 July 2025

Ordinary Time

$ 456.54

Monday 21 July 2025

Ordinary Time

$ 456.54

Tuesday 22 July 2025

Ordinary Time

$ 456.54

Wednesday 23 July 2025

Ordinary Time

$ 456.54

Thursday 24 July 2025

Ordinary Time

$ 456.54

Friday 25 July 2025

Ordinary Time

$ 456.54

Monday 28 July 2025

Ordinary Time

$ 456.54

Tuesday 29 July 2025

Ordinary Time

$ 456.54

Wednesday 30 July 2025

Ordinary Time

$ 456.54

Thursday 31 July 2025

Ordinary Time

$ 456.54

Thursday 31 July 2025

Pre-Tax Super Contribution

$ 500.00

Total Taxable Earnings

$ 10,000.33

Note: Earnings must be either Published or calculated in this current pay run to be considered. If your taxable period includes dates not yet paid to an employee, the earnings calculated will be skewed.

Earnings to not be included:

If you need to process a standard pay item in the same pay run but do not wish for it to add to the total of the earnings, ensure you utilise the Costing Date parameter and cost it outside the pay period dates as essentially it is still a standard pay item for this current pay period.

All best efforts are made to calculate the appropriate amount of PAYG on a non standard pay item however only the information within Definitiv can used, therefore if you disagree with the calculation please manually update.

Did this answer your question?