How do I change the tax rate for my employee - he wants to pay less tax each week?

StephanieStephanie Member Posts: 5
edited January 4 in Accounts Business Range

Changing the tax rate for an employee - he wants to pay less PAYG

Comments

  • Charley van RotterdamCharley van Rotterdam Member Posts: 548
    edited January 4

    You can set him up as a % or a fixed amount in the employee setup

    However if he wants to pay less PAYG then he ends up with a bill from the ATO at the end of the year

  • StephanieStephanie Member Posts: 5
    edited July 2017
    Thanks Charles where exactly in the set up can I do a fixed amount?  He is aware of the EOFY implications.
  • Charley van RotterdamCharley van Rotterdam Member Posts: 548
    edited January 4
    Go to the Employee Centre, double click or edit employee and there under drop down for payroll, click on Taxes, change the Tax Code to No Tax that nothing is taken and then at the bottom you'll have an "Extra Tax' box, tick that and put in the amount you want to take
  • ZappyZappy Accredited Partner Posts: 4,659 ✭✭✭
    edited August 2019
    Oh he "wants" does he? Well he doesnt have that option. And you cannot accede to that request.
  • adrian snaideroadrian snaidero Member Posts: 32
    edited July 2017
    Individual has to apply to the ATO for a tax variation

    Only on receipt of formal "notice of withholding variation" from the ATO can u consider any adjustment to tax rates 
  • ZappyZappy Accredited Partner Posts: 4,659 ✭✭✭
    edited August 2019
    Correct Adrian. He would have already filled out a declaration. You dont get the option to just make it up as you go along. It doesnt work that way
  • StephanieStephanie Member Posts: 5
    edited July 2017

    Yes we have written confirmation from the ATO to alter the PAYG amount on his pay.

    Thanks for your help!

  • ZappyZappy Accredited Partner Posts: 4,659 ✭✭✭
    edited August 2019
    Hmmmm written confirmation. Ive never seen this, not ever.What would be the basis for this?
  • adrian snaideroadrian snaidero Member Posts: 32
    edited July 2017
    Its an official avenue for the individual to apply for a reduction in the tax rate. ATO will provide a written letter response to the employer authorizing a change in the rate tax expressed as a % to apply and normally is valid for a financial year but this is stated in the letter. Reasons for such could be hardship or that an individual will likely have sufficient deductions that would generate a considerable tax refund at year end hence why the request to amortise that by bring forward via tax rate reduction 




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