Second Job Tax Rate - Can excess tax be refunded?

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Forums › Finance and wealth management › Second Job Tax Rate - Can excess tax be refunded?

AidanS

458 posts

Ultimate Geek
+1 received by user: 135

#153582 1-Oct-2014 23:01

Hi guys,

So I currently work a part time job on a casual contract (currently at High School) however I'm looking at picking up a second part time job over the summer holidays. I know for a second job, you get a charged a much higher tax rate which I'm not bothered about, my problem is whether or not I can claim this in an annual tax refund.

Say for example:
- Job 1 = $7k annual gross income @ 10.5% tax
- Job 2 = $7k annual gross income @ 20%+ [?] tax rate

Net income = $14k = 10.5% raw tax rate.

Can I claim back the >10.5% tax on job 2, or is this tax non refundable?

Thanks in advance for help!
A.

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Boeingflyer

643 posts

Ultimate Geek
+1 received by user: 127

Trusted

#1145214 1-Oct-2014 23:10

Employee's are charged PAYE (pay as you earn) tax. You can think of this as schedule payments throughout the year to settle your tax bill at the end of the year. The reason secondary tax is higher than normal is because you are more than likely to move up the tax brackets when you add your two jobs together and therefore it is better to pay more than to get a tax bill shock at the end of the year.

Is that simple enough? Can go into more detail and give you an example if you want.

graemeh

2080 posts

Uber Geek
+1 received by user: 226

#1145773 2-Oct-2014 16:41

Geektastic: If you overpay, IRD will refund your overpayment.

You do have to ask them for the refund though, if you don't ask they won't automatically refund.