HECS amount on payslip

Lyndag

Please can you help, I have an employee who has a hecs debt and wants it to be shown on his paylsip as a separate amount to the normal PAYG is this possible. Thanks Lynda

Kris_Williams

No. It’s included as one tax rate. The employee can look up online and see the tax on the gross as a normal rate, and then work out the difference on the payslip

Acctd4

Hi Lyndag

As Kris mentioned, the PAYG is just a single calculation. If the HECS/HELP checkbox is ticked in the employee record, the system refers to the applicable ATO Tax Table in determining if the employee's ANNUALISED gross payments will reach the thresholds for compulsory repayments & the applicable rate of additional tax to withhold.

It's important to note that this additional PAYG tax that's deducted ISN'T being paid off their HECS debt at that point. Instead, it sits in limbo until the employee does their tax return at which point their taxable income is determined & therefore their HECS repayment status is also determined. Based on that, the additional PAYG is then on-paid to the HECS board if required OR the employee receives it back.