Can you vary the STSL deduction amount
I have selected No Tax Free Threshhold/STSL as per the Employee's TFN Declaration. He has advised that the amount being deducted is too high for the student loan and the ATO told him I should be abl...
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Hi Simonev88351,
Thanks for your post and welcome to the Community Forum.
If it's an Australian government study or training, loan repayments are included in the employee's PAYG withholding obligations. This means that you need to select the applicable tax table on the employee card. The software will calculate the amount to withhold based on that tax table. The employee notifies the employer which tax table to use by ticking the applicable table on their Tax File Declaration. The employer selects the same tax table in the employee card>>Payroll Details>>Taxes>>Tax Table. After determining the exact rate to be deducted, I would advise checking the setup of your deduction to see how it is calculating (Payroll > Pay Items > Deductions) and reverting the deduction to how it should be. This helpful article, Taxes FAQ's, will give you the details on how you can handle the withholding variation rate.
These links to the ATO website have more information on student loans:
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Kind regards,
Shella