I have a new employee whose ATO Tax file Declaration form says 'Claim Tax Free threshold and Additional withholding percentage 5%". On their employee card extra tax can only be entered as $ value. If Tax Table is changed to Withholding Varitaion and I enter 5% it only works out the PAYG on 5% not as an extra. Appreciate any assistance
Hi KW123
Thank you for your post. There are 2 options available when an employee requests a deduction that is different than the standard tax tables.
You can either deduct:
(Please refer to the ATO website for more detailed information on this process: Withholding variations).
For the above reason, you are not seeing the option as the software will always match the calculations with the ATO. So you will need to either work out the extra dollar amount to add to the calculation or the full percentage that needs to be deducted and enter it on the card.
Hope that helps and if you have any further questions on calculations, I recommend checking with the ATO or a Financial Advisor to ensure you are meeting all your tax obligations in your specific situation.
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