Forum Discussion

UEA's avatar
UEA
Experienced Cover User
21 days ago

Paying extra tax

One of our employees wants to pay an extra 1% in taxes. As his fortnightly wages change according to the hours he works I want to use the percentage option rather than the fixed amount each pay period, however the percentage option is greyed out and disabled. Any suggestions on how to use the percentage option?

3 Replies

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    21 days ago

    Hi UEA,

    Thanks for providing the detail. This extra tax can be entered into the employee card, please see this help page PAYG withholding tax for detailed guidance. 

    Regards,
    Earl

  • UEA's avatar
    UEA
    Experienced Cover User
    17 days ago

    You did not answer my question. I asked if you can set extra withholdings as a percentage of wages or

    do I have to manually recalculate the 1% and update it when his wages change?

     

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    17 days ago

    Hi UEA

     

    You’re right, having AccountRight auto‑calculate extra PAYG as a % would be really handy for that sort of setup. At the moment, there isn’t a way to automatically take extra tax as a percentage (like an extra 1% of whatever they earn).

    Right now, what the software can do is:

    • Fixed extra dollar amount per pay – using the Extra tax per pay ($) field on the employee’s Payroll Details > Taxes tab. The same amount comes out every pay.

    So if the employee wants normal tax plus an extra 1% of their wages and their hours change each pay”, you’d need to:

    1. Work out 1% of their taxable gross for that pay, then
    2. Enter that as a dollar amount (either in Extra tax per pay before you record the pay, or by overriding the PAYG figure on the pay).

    It would definitely be easier to just plug in “+1%” once and forget about it, that’s just not an option in AccountRight right now, so it does need that manual calc each time their earnings change.

     

    Regards,
    Genreve