HELP Debt

[Wendyr]

We have a employee who has a tiny hecs debt. She was to notify me last year to change her tax standing to tax free with HELP%2C but she forgot. Today I changed it for her but the amount of PAYG is the same%2C no change? ATO have said she owes money from last year now as she has gone over the threshold. We have salary sacrifice here and we are exempt from FBT under section 57A of the FBTAA 1986. Can anyone help explain? I am a bit confused when the ATO is saying she should be paying HELP but Myob isn't taking any extra out for that?

[CloverQ · Accepted solution]

Hi @Wendyr 

Generally speaking, when processing pays, the additional tax from the HELP tax tables will occur when the employee's income has gone over the threshold. 

What you can try is using ATO's individual tax calculator, choose yes for Study and Training support loans, then generate the PAYG amount and verify the numbers with AccountRight. Also, please make sure that you are already using the latest tax tables in AccountRight, if you go to Setup > General Payroll Information, the tax table revision date should be 1/7/2019.

Please feel free to let us know how you go.