Forum Discussion

DarylK's avatar
DarylK
Experienced User
4 years ago

How do I generate a report that shows the PAYG attributed to an individuals reimbursable expenses?

Per MYOB instructions we created several employee reimbursement categories within our payroll system. They were all meant to be PAYG withholdng exempt, howvever several did not have the box ticked. ...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi DarylK 

     

    I'm not a tax agent or accountant so this is only my understanding, at the EOFY your PAYGW amount is calculated on your total taxable income for the year, not individual categories. If those reimbursements are not included in your gross wages (taxable income) the PAYGW payable amount, based on your total taxable income, will be lower than what you have actually paid. So regardless of how it happened you have basically overpaid PAYGW for the year. PAYGW overpayments are a part of the tax return calculation and are included in any payments or refunds.

     

    You can do pay adjustments to repay yourself the extra tax withheld now or you could wait until your tax return is lodged at the end of year. I'd strongly recommend speaking to your accountant about which option would suit you best. 

     

    In regard to the business I would definitely speak to the company accountant. You need to make sure that any adjustments are done according to the ATO rules. 

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff
4 years ago

Hi DarylK 

 

Thanks for your post. PAYG Withholding is calculated on the total gross amount of all non-exempt payroll categories, not on a per payroll category basis. As such, it would not be possible to break down how much tax was withheld for specific categories. 

 

With regard to the employee lodging their tax returns, if the reimbursement payroll categories have been assigned the ATO reporting category Not Reportable, they will not be included in the total taxable income (Gross wages). Therefore, the employee should be refunded the overpaid tax accordingly. 

 

If you do have any concerns I would recommend speaking to your accountant for clarification.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • DarylK's avatar
    DarylK
    Experienced User
    4 years ago

    Thank you Tracy

    Fortunately they were categorised as “Not reportable” and only affected my own pay.
    The tax I paid was higher when these reimbursements were applied to my pay.
    SO, do I refund the amount through teh business or does this wash out in a group certificate and the ATO refunds (I’ve never seen this refund)?

    In regards to the business refunding, I guess I'll need to go through every payslip and calculate the overpaid tax, and then adjust the IAS/BAS, Payroll tax and possibly WorkCover declarations accordingly?

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      4 years ago

      Hi DarylK 

       

      I'm not a tax agent or accountant so this is only my understanding, at the EOFY your PAYGW amount is calculated on your total taxable income for the year, not individual categories. If those reimbursements are not included in your gross wages (taxable income) the PAYGW payable amount, based on your total taxable income, will be lower than what you have actually paid. So regardless of how it happened you have basically overpaid PAYGW for the year. PAYGW overpayments are a part of the tax return calculation and are included in any payments or refunds.

       

      You can do pay adjustments to repay yourself the extra tax withheld now or you could wait until your tax return is lodged at the end of year. I'd strongly recommend speaking to your accountant about which option would suit you best. 

       

      In regard to the business I would definitely speak to the company accountant. You need to make sure that any adjustments are done according to the ATO rules. 

       

      Please let me know if you need further help.

       

      If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

      • DarylK's avatar
        DarylK
        Experienced User
        4 years ago

        Thank you Tracy, well explained