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Greg_Shipp's avatar
Greg_Shipp
Contributing User
2 years ago
Solved

payroll deduction and PAYG error

Hi MYOB community.

 

Im using MYOB AccountRight Premier v.2022.9.0

I have an employee who has selected tax free threshhold and would like to salary sacrifice to their Superannuation fund of choice.

They work very few hours and so are under the tax free threshhold. When I added the salary sacrifice as a deduction I get a non-zero PAYG deduction, even though they are well under the ATO tax free threshhold.

Why is MYOB doing this? See image below. How can I over-right the PAYG-deduction to be zero? I really don't wont to the employee payslip to include a PAYG-deduction, however small.

Thanks in advance.

 

deductions
PAYG
Payroll
  • Steven_M's avatar
    Steven_M
    2 years ago

    Hi Greg_Shipp 

     

    Under Setup>>General Payroll Information - do you have a value in Round Net Pay Down to a Mulitple of x cents? Based on the values I would assume you have 5 listed in that field.

    What happens when you add a value in that field Round Net Pay is that it will round the net pay amount of the employee to that value with the residual amount going to the PAYG component. So in your case, the employee's actual net pay is $92.07 (81.84 + 20.46 - 10.23), this is rounded to $92.05 with the 0.02 cents going to PAYG.

    So in your case, to remove that PAYG component you would either need to:

    • Set the Round Net Pay Down to a Multiple of x cents value to be 0 so it doesn't round
    • Ensure that the net pay is an exact rounded decimal place amount of the Round Net Pay Down value - this would mean changing the amount paid to the employee or the salary sacrifice amount.

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  • Steven_M's avatar
    Steven_M
    Former Staff
    2 years ago

    Hi Greg_Shipp 

     

    Under Setup>>General Payroll Information - do you have a value in Round Net Pay Down to a Mulitple of x cents? Based on the values I would assume you have 5 listed in that field.

    What happens when you add a value in that field Round Net Pay is that it will round the net pay amount of the employee to that value with the residual amount going to the PAYG component. So in your case, the employee's actual net pay is $92.07 (81.84 + 20.46 - 10.23), this is rounded to $92.05 with the 0.02 cents going to PAYG.

    So in your case, to remove that PAYG component you would either need to:

    • Set the Round Net Pay Down to a Multiple of x cents value to be 0 so it doesn't round
    • Ensure that the net pay is an exact rounded decimal place amount of the Round Net Pay Down value - this would mean changing the amount paid to the employee or the salary sacrifice amount.