Additional HECS/HELP deduction

PRW

Hi there.

 

I need assistance on the treatment of an additional HECS deduction request by a new employee.

 

We are a not for profit and offer salary sacrifice to our employees.

As a result, even though I have chosen the correct ATO rate to include the PAYG +STSL, the tax will be calculated on the lower Gross after salary sacrifice, but the HELP debt will be assessed on the Gross including the salary sacrifice.

To avoid an end of year tax payment to the ATO , the new employee wants a set amount deducted from her fortnightly pay.

 

I have set up a new deduction category and called it HELP debt.

My questions are:

1. Am I correct in allocating this to the ATO reporting category - Not Reportable?

2. Am I correct in treating it as EXEMPT from PAYG - as it is additional PAYG?

3. When and how do I pay it to the ATO?

4. Do I need to show it on my IAS/BAS?

 

Thank you.

LRBooks61

Hi

 

All you need to do is increase the PAYG tax for the employee.

 

It will be included in the PAYG totals in your reporting so nothing else to be done as you will report and pay as per usual

 

Do do this go into the employee card

Select the payroll details tab. go to taxes and in the Extra tax box add the amount per pay the employee has requested

record

 

Hope this helps

 

Lisa