Forum Discussion

jfernandes's avatar
Contributing User
2 years ago

Working Holiday Maker

Hi there


When trying to pay an working holiday maker, MYOB is calculing the PAYG on the YTD. 


The entity is registered and prior to this pay run, the employee should really still be taxed at the lower rate.


MYOB however calculated it on the YTD, causing the employee to miss out on Net wages


Can you please confirm that this will be fixed in the future?

3 Replies

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  • Hi jfernandes 


    Suggest you check the rules with the ATO. PAYG is meant to be calculated on the YTD as once this hits a threshold amount, the PAYG rate increases - this is how it is meant to work. If this pay takes the person over the threshhold, new rate applies to total.




    • jfernandes's avatar
      Contributing User

      Hi Gavin


      The ATO says "if you are registered and total payments you have made to the employee for the income year prior to this payment are less than $45,001..." you use colum 2 in the excel provided, which is the lower rate


      This is taken from Schedule 15 – Tax table for working holiday makers


      Therefore the payment you are making that takes you over the $45,000 should still be taxed at the lower rate

      • gavin12345's avatar
        Ultimate User

        Hi jfernandes 


        My apologies - typically with tax tables it is the other way around. I missed this detail with Working Holiday Makers and my guess is the MYOB developers did as well. Tax Tables normally work on the amount at payment date. MYOB developers probably don't look at the total at previous payment date, just the total at this payment date.


        I will tag a moderator or two Celia_B Earl_HD  in the hope that this gets referred to the developers, in the incredibly slim hope they will actually do something about it. In the mean time, you and every other employer when the WHM payment crosses the threshold will need to manually override the PAYG using the lower rate.