1300 344 480
1300 344 480
1300 344 480

Bonus & back pay withholding

Works out the extra PAYG (and study-loan) withholding on a bonus, commission or back payment that covers more than one pay period, using the ATO's Method A with the exact FY 2026–27 Schedule 1 and Schedule 8 coefficients. A bonus for a single pay period is simpler: just add it to that period's earnings and tax the total as normal.

Pay run details

The result updates as you type.

$
$

Extra to withhold from the additional payment

$0.00

On top of the normal withholding on the period's ordinary earnings, which is withheld as usual.

$0.00PAYG on the additional payment
–study loan on the additional payment

Estimate only. General information, not advice.

Assumptions & rates used in this calculator
  • Method A from ATO Schedule 5 (back payments, commissions, bonuses): the additional payment is apportioned per pay period, the marginal difference is annualised, and the extra withholding is capped at 47% of the additional payment
  • PAYG coefficients: ATO Schedule 1 statement of formulas, scales 1, 2, 3 and 4 (payments from 1 July 2026)
  • Study loans: ATO Schedule 8 STSL component coefficients (payments from 1 July 2026): the marginal repayment system, applied to bonuses and commissions as required; no STSL where no TFN is held
  • Rounding: ATO method: earnings floored to whole dollars + 99 cents; withholding rounded to the nearest dollar (no-TFN amounts ignore cents)
  • Doesn't model Medicare levy exemptions/reductions, withholding variations, or Method B, which can suit large back payments spanning income years

General information only. This calculator estimates withholding from the assumptions listed and doesn't consider your specific circumstances. It isn't financial, tax or BAS advice. Digit Business Advisors are registered BAS agents. talk to us before relying on these figures, or cross-check with the ATO tax withheld calculator.

Frequently asked questions

Common questions about Bonus & Back Pay Withholding Calculator

A bonus that relates to more than one pay period is taxed under ATO Schedule 5 using Method A or Method B. Method A spreads the bonus across the year's pay periods, works out the extra marginal withholding on a single period, multiplies it back out, and caps the total extra withholding at 47% of the bonus payment.
Yes. Employers must include bonuses and commissions in the earnings that study and training support loan (STSL) withholding is calculated on, using the ATO Schedule 8 component rates. Termination payments are the exception: no STSL is withheld from unused leave lump sums or employment termination payments.
Withholding on a bonus is capped at 47% of the payment, and the ATO Method A calculation approaches that ceiling when a large bonus, annualised across pay periods, pushes notional income into the top bracket. Any difference between what was withheld and the actual tax owed settles when the employee lodges their tax return.