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Kathy2's avatar
Kathy2
Experienced User
5 years ago
Solved

No tax free threshold not calculating

I have a new employee who will work minimal hours for us as a secondary job. I have selected no tax free threshold as required, but for his first weekly pay gross $210   No tax ($0) was calculated. I believe $46 tax should be deducted. Have I missed something on his card setup? Tax deductions for our other employees who do claim the tax free threshold are fine. 

Payroll
  • gavin12345's avatar
    gavin12345
    5 years ago

    Hi Kathy2 

     

    You mention that you have 'selected no tax free threshold as required'.  The important thing is where you have selected this - this must be done on the employee's cards under Payroll Details then Taxes. Some users look under Lists > Payroll Category > Taxes - this simply lists the actual tax rates.

     

    If you have selected the tax table on this employee's card, check that the payroll category used has not been exempted from PAYG.

     

    Regards

    Gavin

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  • gavin12345's avatar
    gavin12345
    Ultimate User
    5 years ago

    Hi Kathy2 

     

    You mention that you have 'selected no tax free threshold as required'.  The important thing is where you have selected this - this must be done on the employee's cards under Payroll Details then Taxes. Some users look under Lists > Payroll Category > Taxes - this simply lists the actual tax rates.

     

    If you have selected the tax table on this employee's card, check that the payroll category used has not been exempted from PAYG.

     

    Regards

    Gavin

    • Kathy2's avatar
      Kathy2
      Experienced User
      5 years ago

      Thanks Gavin for your quick reply. Do you mind just refreshing my memory as to how I can check the 'no tax free threshold' is not exempt'? Sorry, it's been a while. I have ticked/selected payg withholding under taxes in his card file. The no tax free threshold is also selected in the card file. 
      Your help is much appreciated. 

      • gavin12345's avatar
        gavin12345
        Ultimate User
        5 years ago

        Hi Kathy2 

         

        If you have set the Tax Table in the employee's card to No Tax Free Threshold - that is all you need to do. If you are still getting the wrong result, in other words if no tax is being deducted, another thing to check is that the Payroll Category you use for this payment is not set as being exempt from PAYG. 

         

        For example if you use a Payroll Category called Commissions and no tax is being deducted, check under Lists > Payroll Categories > Wages > Commission > Exempt to ensure PAYG Withholding is NOT ticked.

         

        Regards

        Gavin