Hi there,
I arrived in mid 2018 and am on a spousal ARC. My employer insists on taxing me at 18%. My understanding is that as I am listed on my partners household registration I should be exempted from the 183 day rule and be paying 5%.
What are your thoughts on this?
At the end of the day, it doesn’t really matter. When you report the tax, the tax office will determine the appropriate rate and you will receive a refund of any excess tax withheld by your employer.
I am not too clued up on how the 183 day rule works. I arrived after July 2018 so when should I be able to get the tax refund?
If you don’t need the 13% immediately, waiting till May would be the easiest.
Oh interesting. As long as I can claim in May next year then no big deal.
You tax rate is 5%. But still, your employee has the option of collecting from nothing up to 18% and they’ll be acting legally if doing so.
Whatever the difference, it will be corrected when reporting your taxes in the following year, either to give you money or to take it from you.
You may not like it (I certainly don’t) but that’s how it is.
Incidentally, I had the same issue with my employer. They were withholding 18% from my monthly salary. I was able to convince them to stop, after showing them that my ARC will not expire in the current year. Otherwise, they’d withhold 18% until after I renew my ARC. That’s the company’s policy, they said. 