Updated PAYG Withholding

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Updated PAYG Withholding

Hi

 

The ATO has updated the  payg tax tables (at least the weekly tax table) when will MYOB update the tax tables?

 

 

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Re: Updated PAYG Withholding

Hi @ingb1970 

 

Thanks for your post. Our team is currently working on this and we expect to have an update available before the 16th of Nov 2020 deadline. For updates please do refer to this post: Tax Table Update - Oct 2020

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
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Re: Updated PAYG Withholding

Does this mean that if we pay an employee directly this month (October 2020) we *cannot actually deduct the correct withholding amount* as the bank feed transaction will not match the October pay run on MYOB??

 

You knew about this change for months, why are you not implementing it immediately since it is effective from 13 October?

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Re: Updated PAYG Withholding

Hi @ld71 

 

As the tax cuts were announced as part of the 6 October budget and did become effective from the 13th October the ATO have provided this information:

 

As the changes to withholding are made part way through the income year, employers and other payers who are unable to immediately implement these changes into their payroll will have until 16 November 2020 to do so.

Employees and other payees will receive their entitlement to the reduced tax payable for the entire 2020–21 income year when they lodge their income tax return.

 

As previously advised, we are currently updating the tax tables and those updates will be available before the 16 Nov 2020 deadline.

 

With regard to processing your pays, your bank transaction should always match the processed payrun. If you choose to manually adjust the PAYG amount using the ATO tax tables you should pay that new net amount to your employees. As such, the recorded pay will reflect the change in PAYG and the bank transaction will be that new net amount.

 

Please do let me know if you need further help.

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Tracey
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Re: Updated PAYG Withholding

Hi Tracy

 

Thank you for your swift response. I don't know how to manually adjust the PAYG withholding when running the pay in Essentials. Do you have any instructions as to how I would manually override the default withholding rate that's currently in the MYOB payroll process?

 

Thanks in advance.

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Re: Updated PAYG Withholding

Hi @ld71 

 

As advised the ATO, if the tax tables are not updated prior to the 16 Nov 2020 deadline Employees and other payees will receive their entitlement to the reduced tax payable for the entire 2020–21 income year when they lodge their income tax return.

 

If you do choose to manually adjust the PAYG I would recommend speaking to your accountant prior to doing so. From an Essentials perspective, you can manually change the PAYG amount when processing a pay by overtyping the PAYG field with the applicable amount. Just make sure that you do this last so that the PAYG amount doesn't automatically recalculate as new data is entered.

payg1.PNG

 

To manually calculate the PAYG amount you will need to refer to the ATO Tax Tables: Tax Tables

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
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Re: Updated PAYG Withholding

Thank you for your advice.

 

We only wish to deduct the correct PAYG withholding for October 2020 (as amended in the new tax tables) as per the ATO's instructions.

 

 

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Re: Updated PAYG Withholding

Hi @ld71 

 

If you are wanting to manually calculate the PAYG, you will need to use the ATO tax tables linked previously. Once you have calculated the amount to withhold you can overtype the PAYG amount when processing the pays.

 

Alternatively, you can wait until the tax tables are updated in your software and the necessary tax adjustments will be accounted for when your employees lodge their tax returns.

 

If you are not sure about the best option or the amount to withhold I do recommend speaking to your accountant or the ATO.

 

Please let me know if you need further help.

Cheers,
Tracey
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Re: Updated PAYG Withholding

HI

 

do you think that a large organisation like MYOB would be a bit faster moving.  

 

Deja Vu, like when we could not process payrolls future dated earlier this year.......

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Re: Updated PAYG Withholding

Hi @Kelie 

 

The tax tables have been updated. For AccountRight users, if your company file is online and you have upgraded to 2020.3 those updated tax tables will be available when you process your next payrun.

 

If you need any help with the updated tax tables please let us know.

Cheers,
Tracey
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