Hello Princess,
As per the original post, the employee has answered the questions correctly - it is MYOB applying the incorrect tax rate to the employees' responses. If paid weekly, a minor who does not declare a TFN does not have tax withheld from pay. MYOB is applying the No TFN resident tax rates rather than the Tax Free Threshold tax rates. This is from the ATO:
The amount you need to withhold from payments to the employee is nil if all of the following 3 conditions are satisfied:
Hi Deanne001,
Thank you for your response.
Usually, if an employee who is under 18 claims the free tax threshold from the self-onboarding form, this information will automatically appear in the tax table. After the employee submits the self-onboarding form, you should be able to check the tax table selected in the payroll details. Please see the attached screenshot below:
The amount of PAYG withheld from an employee's pay is determined by the Tax Table selected in the employee card>>Payroll Details tab>>Taxes>>Tax Table. For example, if a tax-free threshold is selected, no PAYG will be withheld for amounts under $350 as per the ATO tax tables. However, if no tax-free threshold is selected, PAYG will be withheld on all amounts.
If the employee claims the tax-free threshold and MYOB automatically fills out the tax table with "No tax file number resident," please let me know so we can check further.
Cheers
Princess
