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lesleyjones's avatar
lesleyjones
Contributing User
2 years ago

accountright payg tax

I have run a report showing all employees with hecs/study debts. All payee cards have Tax Free Threshold + STSL selected

I have checked ATO tax tables against MYOB PAYG WHTax and MYOB is deducting less than ATO.

e.g. Tax Free threshold + hecs debt of $2394 per fortnight. ATO = $460 + $60 ($520) ... MYOB deducting $508

e.g. Tax Free threshold + hecs debt of $1900 per fortnigt. ATO = $288 + $20 ($308) .... MYOB deducting $288

The tax was being correctly deducted BEFORE 1 July.

help !

 

3 Replies

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  • gavin12345's avatar
    gavin12345
    Ultimate User
    2 years ago

    Hi lesleyjones 

     

    Actually this might be one for the ATO rather than your accountant. MYOB is calculating the correct amount according to the ATO formula provided to developers (NAT 3539 for 1 July 2023):

     

    Where employee has claimed the tax free threshold
     in Tax file number declaration with or without leave loading
    Scale 2 
    WITH STSL Debt
    Weekly earnings  
    (x) less than  
    $ab
    3590.00000.0000
    4380.190068.3462
    5480.2900112.1942
    7210.210068.3465
    8650.219074.8369
    9300.3477186.2119
    10730.3577186.2119
    11380.3677186.2119
    12060.3727186.2119
    12780.3777186.2119
    12820.3827186.2119

     

    2394 /2 = (1197 * .3677)-186.2219 = 253.90 *2 = 508 (rounded)

    1900/2 = (950 * .3477)-186.2219 = 144.09 * 2 = 288 (rounded)

     

    It is a mystery the ATO's pdf tax tables give $520 and $308 respectively when you use the NAT 1006 + NAT 2185.  I would suggest the formulas provided to the developers contained an error.

     

    Regards

    Gavin

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    2 years ago

    Hi, lesleyjones

     

    Thanks for your post.

     

    Taxes are being calculated automatically based on the pay that you entered. Since there is a threshold, the amount differs. With this, we recommend speaking with your accountant, as they can provide you with further information.

     

    Please feel free to reach out if you encounter any further issues.

     

    Best regards,

    Doreen

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    2 years ago

    Hi, gavin12345

     

    Thank you so much for your response regarding this concern. We truly appreciate your time sharing your knowledge with the Community Forum. 

     

    Best regards,

    Doreen

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