Forum Discussion

DelpClem's avatar
DelpClem
Trusted Cover User
2 years ago

Allowances in Payroll -are they taxed?

Hi

How can i tell if an allowance I have set up in Payroll is subject to PAYG tax or not?

Thanks

Anita 

5 Replies

Replies have been turned off for this discussion
  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    2 years ago

    Hi, DelpClem 

     

    Thanks for your post. 

     

    To check if an allowance will be included in PAYG or not, kindly go to Payroll > Payroll Categories > Wages tab and then click the zoom arrow beside the allowance name > Click Exempt > Check if the PAYG Withholding is ticked. If ticked, it will not be included in PAYG. If not, then it is a subject for PAYG. You may also check The Help Article: Allowances for further information.

     

    Please let us know if you require any further assistance with your concern.

     

    Best regards,

    Doreen

  • gavin12345's avatar
    gavin12345
    Ultimate User
    2 years ago

    Hi Doreen_P 

     

    Suggest you check your reply - you may have the ticks around the wrong way (update! - now corrected). My understanding is that if PAYG is ticked, the payroll category will be exempt from PAYG, so not included in the PAYG calculation. I may be wrong...

     

    Regards

    Gavin

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    2 years ago

    Hi, gavin12345 

     

    Thanks for this.

     

    Yes, that is correct. If PAYG is ticked, then it is exempted. If not ticked, it will be included in PAYG. Thank you for your unending support of the MYOB Community Forum.

     

    Best regards,

    Doreen

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    2 years ago

    Hi, DelpClem

     

    Please let us know if you require any further assistance with your concern. Don't hesitate to reach out to us as we are happy to assist.

     

    Best regards,

    Doreen

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    2 years ago

    Hi, DelpClem

     

    We are closing this case, as we were not able to receive updates. Please feel free to start a new post in the future if you encounter any further issues. 

     

    Best regards,

    Doreen