Incorrect PAYG for Working Holiday Maker

Question

We have just run our first payroll this financial year in MYOB business And it has incorrectly calculated the PAYG withholding the employees set up correctly with the payroll for a single week and clearly identified as a working holiday maker with his home country recognized get my OB is calculating the PAYG at 30% when compared to the Atos calculation on its PAYG calculator as 15% How is this possible and why is it happening

Doreen_P · Answer

Hi @ClareM,

That’s a fair concern, especially if the file has worked correctly in previous years. For this one, it’d be best to reach out to our support team via the Contact Us page so they can take a closer look at what’s happening with the tax calculation in that file and help you work through the next steps.

Cheers,

Doreen

ClareM · Answer

I am the accountant and the MYOB partner, and we have effectively contacted the ATO by checking the tax through the ATO tax calculator.  The ATO is not a problem, it is it is MYOB that is calculating the tax incorrectly.   What I need to understand is how we fix this and why it's happening I can't find any further information on MYOB at all.  In past years it has not been a problem, and this is the same MYOB Business file.

Please tell me how to get further assistance to resolve this issue as a manual check using the ATO calculator every Pay and then manually adjusting the PAYG is not a solution.

Thank you

Clare

Princess_R · Answer

Hi @ClareM,

Thanks for the follow-up. The $45,000 threshold is based on the employee’s actual earnings for the financial year. If the employee setup looks correct, it’s best to contact your accountant or the ATO to confirm and for further help.

Cheers,

Princess