ELC-Leo
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Joined 13 years ago
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Re: "Under 18 and below tax threshold" but 47% PAYG withheld
It's like talking to a brick wall. The MYOB Moderators seem to not read our posts. We put our time and effort into explaining things clearly, and the responses, are just nonsense, unrelated and patronising. If MYOB can’t adequately handle superannuation and can’t adequately handle employees under 18 years of age, should you even call it payroll software…183Views1like1CommentRe: "Under 18 and below tax threshold" but 47% PAYG withheld
We've been running our own custom payroll spreadsheet alongside MYOB payroll which catches such things. I just can’t believe it should be necessary – that MYOB’s payroll system can’t cope with it. The spreadsheet is also necessary for us to catch discrepancies in superannuation amounts for employees who turn 18. My spreadsheet does this for us automatically, but MYOB payroll software just says it can't do it. However, unlike the tax code issue, at least there is a warning pop-up box about MYOB’s deficiency in that area.648Views0likes0CommentsRe: "Under 18 and below tax threshold" but 47% PAYG withheld
Hi Earl, A couple of points, for the sake of other MYOB AccountRight users who have been misled by the MYOB marketing and documentation, like I have been. 1. The employee has not answered questions incorrectly – MYOB AccountRight allocated the wrong Tax Table based on their correct answers. So I’d rather stick to discussing that scenario, please. (Anyway, how would we know the information the employee enters is incorrect? How do you suggest that we check that the information is correct – ask them to submit a separate TFN declaration on top of the self-onboarding one? In the end, the employee is responsible for ensuring the tax status information they submit to an employer is correct. Employers act on whatever information the employee provides – and that’s what I thought MYOB was going to do for us, based on the documentation.) 2. How does it make sense to implement an onboarding process that does not capture all the information needed to select the correct tax table – and not tell users about it – but then automatically select a tax table based on incomplete information? The fact that the tax table was automatically changed from the default suggests to users that it was changed for a valid reason. 3. If it is true that your self-onboarding is not appropriate for employees under 18, then MYOB needs to state this limitation clearly in the documentation to avoid your paying users becoming liable for unknowingly withholding mistaken tax amounts. After all, our employees did select “Under 18 and below tax threshold”, to which MYOB allocates the tax table “No Tax File Number Resident”. If they are below the tax threshold, then why select a tax table that will withhold 47%? And why not warn us this might not be correct? 4. The MYOB AccountRight documentation very much suggests that it will choose the correct tax table based on the employee’s self-onboarding (screenshots included). As far as I have found, it does not say anything about employers having to confirm that the correct tax table was automatically selected. If MYOB knows that AccountRight won’t always select the appropriate tax table, then why even bother collecting the tax status information? I would much prefer a RELIABLE manual system than an automated system that gives incorrect results without even a warning. Now that we have discovered this limitation, other than having to rectify withholding amounts, we also must decide how best to adjust our onboarding procedures (again) to ENSURE we manually select the correct tax table in AccountRight, IGNORING whatever AccountRight happens to have preselected based on an employee’s answers. We should have been told about this from the beginning!996Views3likes10CommentsRe: "Under 18 and below tax threshold" but 47% PAYG withheld
Hi Earl, Thank you so much for your response. For 15 years, I have been the one to set up the employee card, not our accountant. The problem and confusion has come from the new self-onboarding system. If they had completed paper forms as was the process in the past, we would have manually chosen the correct Tax Table as "No Tax Free Threshold". Having read the MYOB documentation, I understood that AccountRight would automatically fill the correct Tax Table for the employee based on what the employee enters in the tax section of the self-onboarding. However, I believe that MYOB has not selected the correct Tax Table for these employees. They are exempt from providing a Tax File Number, but according to the ATO, they do not come under the "No Tax File Number Resident" tax category. They should only have $18 withheld per fortnightly $100 gross earnings, not $47 per $100 as MYOB has calculated. So based on their responses, MYOB should have automatically selected "No Tax Free Threshold". So, does MYOB select the correct tax table based on the employee self-onboarding response? Or doe sit not? Should all AccountRight users ignore the category that MYOB selects automatically because it could be in error, and continue to choose the category manually as we did before self-onboarding? Regards.1.2KViews0likes12Comments"Under 18 and below tax threshold" but 47% PAYG withheld
Two successive self-onboarded employees (both under 18, no TFN, not earning much) are having 47% tax withheld, which doesn't seem right. So, I'm hoping for some clarification. Firstly, here is the 'Tax declaration details' section from the PDF snapshot of their self-onboarding responses: __________________________________________ "Tax declaration details Do you have a Tax file number? No Under 18 and below tax threshold Are you an Australian resident for tax purposes or a working holiday maker? Australian resident for tax purposes Do you wish to claim the free tax threshold? No Do you have any of the following outstanding debts or loans? No On what basis are you paid? Casual" __________________________________________ Is it correct that MYOB is using the Tax Table "No Tax File Number Resident", causing 47% PAYG withholding (as shown in the attached redacted images)? When I use the ATO Tax withheld calculator with their responses, it only withholds $18 from fortnightly $100 gross earnings. Is there something that I need to change manually beyond what MYOB takes from the self-onboarding responses? If the current MYOB setup is correct for their given responses, should the employees perhaps also have opted to claim the tax free threshold to prevent the 47% tax withholding (assuming they have no other employer/earnings)? _______________________________ Some notes from my research so far: The employees DO NOT meet the following conditions from the ATO website (https://www.ato.gov.au/Business/PAYG-withholding/Payments-you-need-to-withhold-from/Payments-to-employees/Tax-file-number-and-withholding-declarations/) because, although they ARE under 18 and WILL only earn maximum $150 fortnightly and about $2000 annually, they HAVE provided a TFN declaration during self-onboarding: "Employee is under 18 years old "The amount you need to withhold from payments to the employee is nil if all of the following 3 conditions are satisfied: The individual is under 18 years of age. The individual has not provided you with a TFN declaration (NAT 3092). The amounts you pay to the individual don't exceed ... $700 where you pay the individual fortnightly ..." Also, they DO NOT meet the following conditions from the ATO website (https://www.ato.gov.au/Rates/Fortnightly-tax-table/?page=2 ) because, although they have not quoted their TFN and have not advised they are applying for one, they HAVE claimed an exemption from quoting their TFN: "When a TFN has not been provided "You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply: they have not quoted their TFN they have not claimed an exemption from quoting their TFN they have not advised you that they have applied for a TFN or have made an enquiry with us."1.6KViews0likes16CommentsMystery Recurring Transaction
Hi, Upon inspecting the transactions in one of our expense accounts, we have noticed a monthly recurring Spend Money transaction for a consistent amount that we have not been entering manually, and it is NOT present in the Recurring Transactions List window. It also is NOT coming from a bank feed or imported transaction list - we have checked, and this transaction in MYOB has no basis in reality. It's just generating automatically within the software, and we need it to stop. Where else could this transaction be coming from? It there a way to trace the origin of transactions? Thank you, L293Views0likes2CommentsRe: Self-onboarding email not received by employee and card not created
Hi Nessa, For us the issue of the email not being received was related to having deleted the employee and then trying to send a brand-new onboarding invitation. MYOB said their records show that our employee did receive the initial invite, but by the time they went to complete the onboarding, the invitation had expired. What we were supposed to do in that case is use the "resend" function, which we didn't know about because it's hidden in a "..." menu, and only available in the browser version of MYOB which we don't use. The issue with the SMS was not resolved. What we did in the end was ask the employee for an alternative email address. We then sent a new invitation to them at that address. During the onboarding, they weren’t able to change their email to their original/preferred address, but after the onboarding, we then changed all instances of the alternative email address to their preferred address.864Views0likes0CommentsSelf-onboarding email not received by employee and card not created
I have tried 4 times over several months to have our new employee receive the self-onboarding email to his gmail address. He has never received it (not in junk, etc). I have used the self-onboarding process successfully with a few other employees. With this employee though, the first time, a card was created for him, but he did not receive the email or text. He did not appear in the Pending Invites area. Before trying again, I deleted the almost-blank employee card. The second, thrid and forth times, no email or text was received, and no card was created. But every time a pop-up message tells me "Onboarding invite sent and employee card created" - which is just not true. (screenshot) I then thrice tested the self-onboarding email process with my own email address (hotmail) and mobile number. The first time, a card was created and I did receive the email, but no text. The second time (screenshot), I tried to send another invite without first deleting the card which was created on the first try; this resulted in no email and no text being received, and no new card being created. I then delted the card from the first test (screenshot) and tried again. This third time, no email arrived, no text arrive, and no card was created. I don't know why no texts are ever sent, and I don't know why he didn't receive the inital email. But I suspect that there is also an issue with sending another invitation to the same email address. So then what are we to do other than force the employee to use a second email address, and try again?1KViews0likes4Comments