Tax Deducted from Pay Roll.

Martin Teh

I have a just processed a new part time employee on a fortnight pay cycle. His gross salary is $1276.92 and the tax deducted is $160. The employee advise that the tax by tax calculator should be $118.04. My Reckon Enterprise Tax Table Version is 2223312 and updated as at 1/7/2022.

Can someone explain the reason for the difference in tax deducted?

Thank you.

Martin

Acctd4

Hi Martin

• Is the employee a Resident for tax purposes ?
• Is he claiming the Tax-Free Threshold (TFT) ?
• Does he have a HELP (previously “HECS”) debt ?
• Is he claiming any offsets ?

Based on the fortnightly resident tax tables, neither of those amounts are actually correct 😬 I've tested multiple tax configuration scenarios & none calculate the PAYG as either of those amounts.

If claiming the TFT, the PAYG should be $ 132. If not claiming the TFT, it should be $ 316.

Your RA program/tax table version are the current (correct) one so it sounds like there’s a problem with your employee tax configurations &/or your Payroll Items.

Check you have the correct setup in the Taxes section of the employee’s record ...in particular these highlighted fields:

... & also check the setup of each of the Payroll Items used on his Paycheque.

If you're still having trouble identifying & correcting it, feel free to get in touch with me direct ☺️