PAYG reduced in July 2023 for Employee with Tax Free Threshold plus STSL

Helen17

Good morning

Our employee is claiming the Tax Free Threshold plus STSL (HECS) and advises that the HECS amount is 1% of her gross pay ($9.00).

Pay on 21.06.23  has PAYG as $165.00 while on pay 19.07.23 it is $156.00 – as it is $9.00 she is deducing that HECS payment has not been made.

Can you offer any assistance is confirming why tax amount has reduced??

 

gavin12345

Hi @Helen17 

 

This is normal around 1 July as each year the ATO changes the point where STSL applies, based on CPI etc. It is likely this employee is no longer liable for STSL.

 

To check MYOB is calculating the correct PAYG, you need to compare the amount deducted against PDF tax tables available from the ATO website. If these show the PAYG is wrong, you need to then look into why. You would need to provide more information, such as payroll categories used, amt for each payroll category, whether any are exempt from PAYG, is the employee paid weekly or fortnightly etc. With this information someone might be able to identify what is causing the discrepancy.

 

Regards

Gavin