Q: I'm 15 years old, live in New Zealand. I get paid $9 an hour, last week I worked for 6 hours.. so that's $54. I think my tax thing on my Inland Revnue or whatever is 19.5% but I'm not sure if thats my rate i use cause my friend who 14 is working at the movies and she gets 10% tax. Anyway... I got paid $48.81 for that 6 hours. Also on my employment contract it says this: "As this is casual employment, the employee agrees to receive payment of 8% of their pay as "pay as you go" holiday pay, which will be paid each time a payment of wages is paid to the Employee." Can anyone help me figure out how my pay from $54 came to $48.81? I know I got tax and stuff, but I can't figure it out? Thanks
A: Ok, i live in New Zealand as well (christchurch) Basically, $54 is your gross pay before tax, 19.5% is taken off that amount as tax to the government. So that would be $43.47. Because you are a casual worker, this means that you have no fixed hours but you are still entitled to holiday pay, (everyone is entitled to 4 weeks free pay a year if you work full time, which works out being about 8% of your total pay) and because you dont work full time, then your entitled to 8% on top of every pay but no lump sum of holiday pay at the end of the year. So you get a bonus $4.32 plus ur already existing 43.47 which totals to $47.79. Im not 100% sure but because your only 15 i think ur get a little less that 19.5% tax rate which is why u r a dollar better off that the $47.79 i calculated... hope this makes sense.