Tax free threshold + STSL
Hi, I will soon be changing a casual employees payroll category from the Tax Free Threshold to then show as Tax Free Threshold with STSL. I just did a dummy pay and cancelled out of it. I put in...
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Has this been resolved yet or have you had a response.
I am having the same issue; the "Tax Free Theshold +STSL" tax type is not calcuated correctly.
Not confirmation but there are reports of the ATO formula for software providers being wrong;
https://community.myob.com/t5/AccountRight-Staffing-and/accountright-payg-tax/td-p/844035
For your information I brought a similar problem with PAYGW calculations to the attention of the ATO and the Tax Board years ago.
It related to the calculations for people who had two jobs and the without tax free threshold was not working correctly. Try their on line calculators even and the same problem happens there.
For example an employee who say earns $1,200 a week from one employer would be taxed $231 and be all good (hopefully at year end). But if that employee works at one employer and gets $800, claims threshold Tax is $101, then they earn $400 and dont claim threshold their tax is $90. They have now paid $191 between the two jobs.
If this employee does this on a regular basis at the end of the year they will be underpaid $2,080.00
The ATO's response was, Well the employee can make a payment plan!
This sort of BS stuff makes me long for days when we can once again have a Tax Commissioner as good as Michael Carmody. You know, one that actually cares enough to make sure that everyone including himself is there to make improvements going forward. Australian Taxation relationship with Tax agents actually felt like a collaboration back then.
