STP Extra Tax Payment

[LifePaul]

HI

i currently have an employee who has chosen to deduct extra money from their pay to contribute to extra tax payments

Currently this is in deductions because i cannot place in the Tax  Tab

When trying to report this in the ATO Reporting category it is not showing as PAYG Withholding

Is there a way to overcome this

[Steven_M · Accepted solution]

Hi @LifePaul

If extra tax amounts do need to be deducted from the employee do use the following steps to set that up:

1. Card File>>Cards Lists>>Select the relevant employee's card
2. Select the Payroll Details tab>>Taxes
3. Enter the required extra amount into the Extra Tax $x.xx Per Pay

By entering an amount into this field it will increase the amount of the PAYG Withholding for the employee.

Note: This would be in addition to their 'normal' PAYG Withholdings amount

[Val3241]

Hi,

I too was having trouble with the extra PAYG withholding some of our employees choose to withhold as extra PAYG tax, and our process here is to enter that as a deduction.

I have seen the solution in the new version 2018 and have actioned the problem.

However, my question is, with this new function the figures are now added together on the employees payslip but they prefer to see the amount as a seperate total......so 2 figures on their payslips, one for the calculated amount, and one for the Extra PAYG withheld. Is that still possible ?

Thankyou

[Steven_M]

Hi @Val3241

Welcome to the MYOB Community Forum, I hope you find it a wealth of knowledge

Adding an extra tax amount as outlined in my above post on this thread will add that extra tax amount to the PAYG amount. This is not able to be separated out for payslip and other reporting purposes.

[JHA]

Steven in response to your solution on how to enter in extra amounts of tax an employee wishes to pay - how would you report this for STP purposes?  I am unsure of the linked catgeory here?  I have uploaded a document that shows the one I am trying to link.  I have contacted the ATO and they have advised that they cannot help me as it is related to how an individual software provider (ie MYOB) system works!

[Steven_M]

Hi @JHA

If you do use the method in my previous post i.e. adding the extra tax component onto the employee's card, that value will be reported with the PAYG withholding values. As such, a separate category is not required to be created/used. This does mean if you have a (deduction) category set up for that you would unlink the employees and set it to be Not Reportable as it will not be used going forward.

[JHA]

Thanks so much - I think this must have been an old category someone set up before my time.  I appreciate the help, we are finally good to go!

[robcraw]

Steven you are correct in that the only existing method of handling extra tax in this STP environment is by basically discontinuing the extra tax deduction, but why can't the PAYG Withholding ATO Reporting catgeory that exists under the PAYG W be made accessible for these extra deductions?

At the moment all we have are 5 unsuitable category options.

By including the PAYG Withholding ATO reporting cateory then our issues are immediatly resolved!

Rob Crawford

[Em_P]

Hi @robcraw

Thank you for your feedback.

I understand your frustration with not being able to assign anything to the PAYG Withholding Category, 

I will pass this onto the team to see if it may be included into the software. For now the only workaround for this is as mentioned above by @Steven_M

"If extra tax amounts do need to be deducted from the employee do use the following steps to set that up:

1. Card File>>Cards Lists>>Select the relevant employee's card
2. Select the Payroll Details tab>>Taxes
3. Enter the required extra amount into the Extra Tax $x.xx Per Pay"

In regards to why you cannot assign additional categories, we have created our categories to align with guidelines provided to us by the ATO. They are only wanting to see and expecting to see one PAYG Withholding category, therefore we only allow there to be one. However we do still provide the option to have the extra tax for the cases alike yours where you need to assign extra tax.