PAYROLL - doing an extra pay
Hi, I have a question about tax relating to extra pays, often we will complete the weekly payroll and then find out hours have been missed and have to do an extra pay the next day. What is the be...
Forum Discussion
Hi brooke27
AccountRight takes the gross amount of that individual pay and then uses that against its tax tables set for the employee.
As such, if you are paying a short amount or an extra pay amount this would use the standard tax tables amount like it is a normal pay amount for that employee i.e. not look at the history. Should you need to update the PAYG amount for a pay to match what the ATO does think it should be for that particular pay/period then you can click into the Amount field for that PAYG line in the Pay Employee to update accordingly. Don't forget to put it as a negative to reduce the gross amount.
Thank you, what would be the easiest way to calculate the tax amount to be entered in the extra pay?
Hi brooke27
The way I would do it and I would strongly recommend speaking to your accountant/the ATO would be:- Determine what the gross amount for the total wages for the period would be
- Use the ATO calculator to determine what the overall total amount should be
- With that Total amount value minus what has been calculated to give the amount required for that pay
However, as there are some thresholds and other components that make up tax it is recommended that you do speak to your account/the ATO to ensure you have right tax amount for your employees.
