Hi,
Quick question: Our payslips do not currently specify the HECS repayment. Is there a way to include HECS repayments on the payslips so that they are visible to employees? I am not the MYOB admin and cannot change the settings myself.
If MYOB offers this functionality, it would greatly increase transparency in our payslips.
Thanks,
Indigo
Payslips do not (and should not) specify 'the HECS repayment' as there is no HECS repayment at this point. This is not how the HECS system works.
If an employee indicates they have a HECS debt, the employer is obliged to deduct additional PAYG which is sent to the ATO. The additional PAYG is not a HECS repayment.
When the employees completes their tax return and it is processed by the ATO, then and only then is the liability for a compulsory HECS repayment determined, depending on the taxable income of the employee. If no liability arises, any additional PAYG deducted is returned to the employee as a refund. In this case any reference to a HECS repayment on the payslip would be misleading.
If a liability arises, the additional PAYG is applied to the HECS debt. This is when the HECS Repayment takes place.
An employee can of course make non compulsory HECS repayments directly to the ATO, however not though the PAYG system.
Regards
Gavin
