New employee not accruing PAYG on payslip, Do I need to add in previous yearly income from old emplo
Sarah Harrigan
Member Posts: 6 Novice Member 
New employee does not seem to be accruing any PAYG on the pay slip. I was wondering if i need to put in the previous income the employee had from old job?? in the payroll and compensation section under taxes Federal I have him with the TAX code 2- TFT and under the State I have NSW - and Tick include the state payroll tax
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How often is he paid? What is the salary?0
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His paid every fortnight he has already earned over $20,000 with previous employer. so needs to be paying tax with us.0
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Is he working two jobs?0
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No just the one with us, he has left the old employer.
thanks kevin0 -
Income already earned from a previous employer has nothing to do with the employee in your company. If you have set up the Hourly Wages or Salary correctly with the PAYG tax ticked then the tax will work out correctly if you have also set up the employee record tax as 1-no TFT or 2-TFT (or other options).
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Sarah TFT is the correct tax table unless he has claimef it elsewherr simultaneously.0
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Sarah. Following on what DebonAir and Keven have stated, if the tax table is selected as TFT, the employee can earn up to about $712 per fortnight and not have to have any tax deducted. At around $714 per fortnight, tax of $2 would need to be deducted.
John L G1 -
Yes, as John stated, there might not be any tax showing if the person has not earned enough in the pay period to pay tax on this pay run.0
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Hi Guys thanks for the feedback, I just check his payroll items list and employee set-up and everything is how it should be, TFT etc.
He only receives $450 per fortnight from us which would put him below the tax free threshold but has previously worked for another company this financial year and has earn't over the threshold amount.
He also receives the rest of his wages back to what his previous employer paid through workers compensation which would again lift his yearly salary above the tax free minimum.
Is there any way to make the system recognise his previous salary so it starts deducting the tax??0 -
You can override the tax and put whatever amount you want. Though I would not be doing this. The tax tables are correct for amount paid each week, what he earned before should not really be your problem.0
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how can you override that tax amount, currently when I do his time sheet and then create payment is shows no PAYG on the time sheet.
Debonair are you saying i can change that??0 -
Yes you can, you click on the PAYG tax line and change the zero to whatever you want the tax to be.1
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The employee can ask for an upward variation in PAYG tax to be withheld if they want:
Best to get it in writing & two copies - one for them and one for you.
If they want to do that, it is possible to adjust in the program but first find out if they want to do that and how much.
Regards, Robyn Kelly
Robyn Kelly
Reckon Accredited Partner since 2000
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Sarah. There is also an ability to set up the tax so that an extra fixed amount can be taken out each fortnight, but that is at the discretion of the employee. It is not your responsibility to manage the employees tax affairs. In any event, if this employer has earned $20,000 from another employer over a 4-5 month period of time, that will have been taxed at an equivalent rate of an annual salary of some $50,000 to $60,000. That effectively means that he has more than likely paid adequate tax already to cover the $7-8,000 that he is going to earn from you till the end of June.
John L G2 -
thank you Robyn and John for that advice, I have found where I can change the amount of PAYG tax manually as debonair said, but being able to set the amount (as agreed on from employer) per fortnight would be great do you no how I can set that John??0
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Sarah. Under the same tab that you set the 2-TFT code, further down the page you will see a box which says "Extra Tax". The amount that you include here is an amount which is added to the tax each pay period.
John L G1
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