Company paying extra tax for employee

Hi Kirsti1 

I assume your employee has asked to have extra tax deducted, either because they received a tax bill last year or just because they like getting a refund and it is a way of saving.

A lot of my clients have employees that want to be taxed an extra $20 or $50 each week because of those reasons.

In the employee's card go the payroll details tab, then to taxes, in there you will see the box extra tax per pay, enter the amount they want paid there.

Hi Kirsti1 

It will reduce their nett income.

Hi Kirsti1,

Thank you for the post and welcome to the Community Forum! I appreciate you reaching out to us, and I'll be more than happy to help you with this. To pay an extra tax for your employees, you can add it under Pay Items. You can create a new expense pay item, then link the expense to your employee. But we highly suggest that you need to get in touch with the ATO or consult to your accountant.

Please let me know if you need further help.

Kind regards,

Sai

Hi Sai

Thank you for getting back to me.

Does that mean I will put in the payable linked account to PAYG Withholding

and the expense linked account to Wages and Salary?

Hi Julie

Processing this as extra tax, would this would reduce their nett income or will the extra tax increase their salary?

Hi Kirsti1,

Thank you for your patience. Do you still need assistance with this? Please let us know if you still need help and we'll be glad to assist you.

Please let me know if you need further help.

Kind regards,

Sai

Hi Kirsti1,

Thank you for your patience. I'll be closing this thread now. If you still have any concerns, please feel free to post in our Community Forum.

Please let me know if you need further help.

Kind regards,

Sai