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June 2019 - last edited June 2019
June 2019 - last edited June 2019
We process our pays on a Monday for the Fortnight before. For the Financial Year ended June2020 this will mean we will be processing 27 pays, not 26. Does MYOB adjust the Fortnightly wages and Tax to cater for this?
Thanks
Lara
Solved! Go to Solution.
June 2019
June 2019
Is anybody able to help with this? DO I adjust all standard pays to cope with the extra payment?
June 2019
June 2019
I have the same issue. I suspect no one has the answer as far as MYOB goes. However, the last bit of information the ATO provides is:
When there are 27 pays in a financial year -
In some years, you may have 27 pays instead of the usual 26. As this table is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let your employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amount in the table below.
Extra withholding amount
Fortnightly earnings $ Additional withholding $
1,400 to 3,399 | 12 |
3,400 to 6,899 | 17 |
$6,900 and over | 37 |
This is dated 8 October 2018 on ATO website.
Cheers.
June 2019
June 2019
Thanks Maria, much appreciated.
I suppose my question also involves the Gross Pay. If you're on a Salary of $100k say - your normal Gross Fortnightly pay is $3,846.15 in a 26 pay event year. Does this Gross adjust down in a 27 Pay event year or does it look like you have had a pay rise at the end of the year?
I hope this makes sense and I'm not asking one of the dumbest questions ever!
June 2019
June 2019
Hi @LaraADS1
From an AccountRight point of view, AccountRight will take the annual salary entered on an employee's card and divides that by the pay frequency in a standardised year i.e. weekly - 52, fortnightly - 26, month - 12. If the payroll year actually is a different frequency consideration during the year would need to be done should you wish to pay the employee the exact annual salary value, for example, you might have to increase or decrease the amount paid to an employee.
For PAYG purposes, the system will tax the amount that is paid to the employee based on the pay frequency of the employee's card, tax table the employee is on and that the file is set to. This is done on a per pay basis, it doesn't review historical information paid to the employee for PAYG or gross.
June 2019
June 2019
Thanks Steven,
I've completed some more research and found that nothing can autmoatically be done. It's just an anomaly that happens every 5-6 years that you either leave and allow the Full time workers to have 1 extra pay (hence a payrise for that 1 year) or you adjust their Pay event down to equal out over the year (no employee ever wants their standard wage adjusted down!).
The only thing you can do is let them know that they might have tax to pay at year end on the extra Pay when they lodge a tax return, so they can either cope with that or increase their Tax Paid each Pay Event.
Thanks for the response
Lara
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