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Employee purchase tax deduction
Hello,
I am deducting an employee purchase of $1500 for one of our staff but it hasn't reduced his PAYG withholding only his net pay - is that correct or have I set it up incorrectly? TIA.
Hi VMPS
Thanks for your post. If it is a pre-tax deduction you would need to open the deduction payroll category>>click Exempt and tick PAYG withholding, which will reduce the PAYG withholding amount.
If you're not sure whether the purchase is pre-tax or post-tax you will need to check with the ATO or your accountant.
Please let me know if you need further help.
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