Incorrect Tax being taken out

Question

Hi&nbsp;I've set up an employee with PAYG withholding tax free threshold.&nbsp;Gross pay per fortnight $3449.58Tax is incorrectly calculated at $987.03&nbsp;I don't understand why the difference.&nbsp; The tax tables state that the correct tax should be $752 withheld.&nbsp;I do notice however, when i go into payroll details and then Taxes and then I tick on PAYG witholding, the next screen comes up as such... it appears to include foreign resident and if i change it to tax free threshold, it reverts back to foreign resident.&nbsp; Would you please help me to allow myob to deduct the correct rate as per the tax tables?&nbsp; Thank you&nbsp;

princess_r · Answer

Hi DianeOB123,
&nbsp;
Welcome to the Community Forum!
&nbsp;
I see you're having trouble with the PAYG withholding tax being calculated incorrectly for an employee, and it’s not matching the tax tables. This issue might be because of your payroll categories set up. It could be that the PAYG Withholding category isn’t properly linked or exempted from your wages or deductions. For more info, please check out this Help article: Taxes.
&nbsp;
Feel free to get in touch if you need more help.
&nbsp;
Cheers,
Princess

gavin12345 · Answer

Hi DianeOB123&nbsp;This area of the file simply allows you to 'view' the tax rates for the different tax tables. To set the tax table to be used by an Employee, you need to open the Employee Card and look under the Payroll Details tab and then under Taxes.RegardsGavin

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Incorrect Tax being taken out

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