Pay frequency v Tax Override

[KaliPPS]

Hi, Can you please confirm to me when I would adjust 'this pay is for' section under 'tax override' versus when I adjust the 'extra pay amount' field? For example, if I had an employee who normally works 10 days per fortnight work 11 days one fortnight would i change the 'this pay is for 2 weeks' to '11 days' or would i put the additional gross amount (above his normal 10 day salary) in the 'extra pay amount' section and leave the 'this pay for' section at 2 weeks?

[jenniek]

Hi @KaliPPS 

You would only use the tax override if you are paying a extra amount like a bonus.  In your example - an employee working 11 days instead of 10 is still taxed as per normal over a fortnight period - there is no need to adjust the tax.

These days we don't really need the top box of "this pay is for" - you more use the "Extra Pay" amount for a bonus, cash out of leave or the like - this is then taxed at secondary tax - of which you need to apply the appropriate secondary tax rate.