We have just run our first payroll this financial year in MYOB business And it has incorrectly calculated the PAYG withholding the employees set up correctly with the payroll for a single week and clearly identified as a working holiday maker with his home country recognized get my OB is calculating the PAYG at 30% when compared to the Atos calculation on its PAYG calculator as 15% How is this possible and why is it happening
Hi ClareM,
Thanks for checking the ATO calculation. The 30% rate usually happens if the employee has gone over the $45,000 YTD threshold, your business isn’t registered with the ATO as a WHM employer, or the employee’s setup in MYOB isn’t quite right. Please double-check the employee card and make sure the Working Holiday Maker tax table, income type, and home country are entered correctly. You can also have a look at this Community thread, which goes through the tax rate setup in more detail.
Cheers,
Princess
this is what the card currently shows:
these seem correct aren't they, does the $45000 limit start on day 1 by annualising their pay and if so why as most of these people are casual and never work anywhere very long.
Hi ClareM,
Thanks for the follow-up. The $45,000 threshold is based on the employee’s actual earnings for the financial year. If the employee setup looks correct, it’s best to contact your accountant or the ATO to confirm and for further help.
Cheers,
Princess
I am the accountant and the MYOB partner, and we have effectively contacted the ATO by checking the tax through the ATO tax calculator. The ATO is not a problem, it is it is MYOB that is calculating the tax incorrectly. What I need to understand is how we fix this and why it's happening I can't find any further information on MYOB at all. In past years it has not been a problem, and this is the same MYOB Business file.
Please tell me how to get further assistance to resolve this issue as a manual check using the ATO calculator every Pay and then manually adjusting the PAYG is not a solution.
Thank you
Clare
Hi ClareM,
That’s a fair concern, especially if the file has worked correctly in previous years. For this one, it’d be best to reach out to our support team via the Contact Us page so they can take a closer look at what’s happening with the tax calculation in that file and help you work through the next steps.
Cheers,
Doreen
