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Wrong PAYG withhold with new employee

Sunflower

I have a new employee for her i have only two times run the payroll. first fornight she only worked for 6.25 hours and for second fornight she worked for 69.5 hours. First pay there was no tax withhold amount, but for second fortnight her gross pay was $2529.80 and YTD was $2757.30 only though her Payg withhold was $700 now she is complaining about her PAYG. I have double checked with her "Tax free Threshold" has ticked already. I don't know what was wrong with her Payg. Could you please help.

Thank you

Sunflower

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Steven_M

Hi @Sunflower

There is actually a direct topic on this situation on Help Article: Changing a recorded pay- To fix a pay with an incorrect PAYG amount.

In short, the recommendation would be to adjust the employee's next pay. This is done by when preparing their pays go into the arrow next to the employee's name so get the Pay Employee window. You would then override (manually edit) the PAYG Withholding amount to reduce (or increase) the amount of PAYG withholding is being calculated. Alternative, options are listed on that help article as well.

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Sunflower

Hi Steven,

Thank you for your quick reply. I have followed all the steps and found that it was weekly frequency selected instead of fortnightly. Now my another problem is how do i correct as i already have paid that employee.

Many thanks

Sunflower

Steven_M

Hi @Sunflower

The PAYG withholding value you have supplied appears to be the one for the weekly tax table amount. As such, I would recommend completing the following steps to ensure that the employee is on the fortnightly pay frequency, which should give them $508 PAYG for the amount of $2529 (give the tax table and frequency).

Navigate to Card File>>Cards List.
Select Employee.
Choose the desired employee's card.
Within the Card information window, select Payroll Details.
Select Wages.
Ensure that the Pay Frequency is set to be Fortnightly.
Select OK to close the Card Information window.

Once on the pay frequency of fortnightly, which will match what they are paid, you should have the appropriate amount of PAYG as per the ATO Tax Withheld calculator.

If you have already processed the pay, the recommendation would be to check out Help Article: Changing a recorded pay for further information on dealing with that situation post record of the transaction.