Forum Discussion

KaliPPS's avatar
KaliPPS
Experienced User
4 months ago

SA tax code is taxing wrong in MYOB 2024.2

Hi,

 

I have an employee whom I'm paying a bonus to which puts their grossed up annual income in excess of $180,000, and therefore over the ACC levy for 2024-25 of $142,283.

 

I therefore taxed the additional payment as an extra payment and used tax code 'SA', I also ticked the 'Extra pay is exempt from ACC Earners Levy' box .

 

MYOB desktop payroll (version 2024.2) is taxing this payment at a flat rate of 39% when the 'Extra pay is exempt from ACC Earners Levy' box is ticked, and at a rate of 40.60% (39% PLUS 1.60% for ACC) when this box IS NOT ticked.

 

According to IRD tax tables, the 39% is INCLUSIVE of ACC levy. See extract from IRD below:

 

Can you please tell me why the software is taxing this payment like this? Is this a known issue with the 2024.2 release?

 

Cheers, 

 

 

 

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator

    Hi KaliPPS

    It seems you're facing an unexpected tax calculation when processing a bonus payment. To help resolve this, I recommend visiting this help page [MYOB Payroll 2024.2 - July 2024

    ], where you'll find more detailed information on the issue.

    Regards,
    Earl