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Mylene's avatar
Mylene
Experienced Cover User
2 years ago
Solved

Additional Tax + NO TAX FREE THRESHOLD + HELP

I need help working out how to tax an employee who   Pays an additional 26% Has a Help debt Has No Tax Free threshold (as this is his second job) If I change him from No Tax Free Threshold + H...
additional tax
Payroll
withholding variation
  • LRBooks61's avatar
    LRBooks61
    2 years ago

    Hi

     

    Well that is a problem, perhaps he could nominate an amount per fortnight ,which would make it easier for you.

     

    However , if you have to made the calculations prior to payroll processing then you could add the additional tax to be paid by overwriting the PAYG Withholding in the pay itself 

     

    That's the only suggestion I can come up with but it would save having to use the other payroll category which I think is problematic

     

    Hope that helps

     

    Lisa

LRBooks61's avatar
LRBooks61
Ultimate Cover User

Hi

Does the employee pay 26% on his gross wage? Or is it calculated in a different manner?

 

I would suggest that if they pay a calculatable amount you could add it to the employee card

 

Payment details - tax tab - extra tax

 

That way it is added at the time of payroll and is reported as PAYG withholding along with everything else.

 

Hope this helps

 

Lisa

Mylene's avatar
Mylene
Experienced Cover User
2 years ago

He pays 26% on his gross wage.

 

Unfortunately, he is casual so the hours vary each fortnight and the amount varies pay to pay.

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    2 years ago

    Hi

     

    Well that is a problem, perhaps he could nominate an amount per fortnight ,which would make it easier for you.

     

    However , if you have to made the calculations prior to payroll processing then you could add the additional tax to be paid by overwriting the PAYG Withholding in the pay itself 

     

    That's the only suggestion I can come up with but it would save having to use the other payroll category which I think is problematic

     

    Hope that helps

     

    Lisa

    • Mylene's avatar
      Mylene
      Experienced Cover User
      2 years ago

      That's what I was wondering, Lisa.

       

      So, is overwriting the PAYG to include the additional 26% acceptable?

       

      I can do that, but I would have preferred not to. It's so easy to forget to make it a negative number (I've done that before!!).

       

       

       

      • LRBooks61's avatar
        LRBooks61
        Ultimate Cover User
        2 years ago

        Hi

         

        Indeed , we ar only human, cut us and we bleed!!

         

        Yes exactly add the addtional on and make sure you are fully caffinated so that the - goes in front.

         

        This is why payroll can be such a nighmare  - peoples expections!!!

         

        Good luck 

         

        Lisa