Payroll tax deduction incorrect

Peter Collett
Peter Collett Member Posts: 5
edited June 2020 in Reckon One
Payroll tax calculation for casual working 38hrs @ $40 usually shows tax deduction of $466, but two separate weeks it calculated tax at $489. Both of these differ with the ATO calculator rate as $363. TFN is provided, tax exempt rate, no HELP or HECS etc, simply basic employee status.


Also, when entering another casual with just $200 or $400 per week it calculates more than $0 tax deduction.


  • Felicity Bleckly_10462754
    Felicity Bleckly_10462754 Member Posts: 43
    edited June 2020
    Could it be calculating tax for other periods as well? For instance SGC doesn't calculate until pay reaches $450 and then it calculates on the total amount earned in that month. And perhaps also check your payroll items to makes sure they have the right designation. And...also check whether your system calculates for the right pay length. for instance if you pay fortnightly but your system (or perhaps even some of your employees) are set up for weekly then the tax will be calculated as if the pay us for one week and not two?
  • Peter Collett
    Peter Collett Member Posts: 5
    edited June 2020
    PAYG. Weekly payrun, and we have checked the dates are correct (I.e. 7days consistently).
    Employee has been entered as 38@$40 since March, but we noticed 2 payslips of the last 5 were different.
    Why is the tax deduction not same as ATO calculator for weekly x52 ?
  • Gailsnowdon1_10860481
    Gailsnowdon1_10860481 Member Posts: 11

    Hi i am having to manually adjust PAYG also as too much tax has been deducted each week for god knows how long as i've just checked with ATO calculator. Why is this happening i've checked all the solutions suggested and all seems correct.....

  • syncmedia
    syncmedia Member Posts: 8

    Hi there,

    Generally when tax is not working correctly for casual employees, the system is using the casual daily tax table. , what causes this is on the employees pay-run you must have entered a date from and date to on the ordinary timeline.

    Please also be mindful that the tax calculation for daily and casual workers is slightly different to a part-time or full-time employee further information can be found here: which may be the reason why you are seeing the difference.