by Capricorn89  12/07/2018  101 Page Views
2 Comments  Employment law, compensation law
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?