Employee tax codes

earthmoving1
earthmoving1 Member Posts: 9 Novice Member Novice Member
in Accounts Hosted

Hi, All our employees are claiming the tax free threshold so I have them coded to 2-TFT. However it has been brought to my attention that they have all been overtaxed . I checked on the ATO employee tax calculator and it seems that this is correct. They have all been overtaxed. Can someone please advise what tax code I should be using. Thank you. Wendy

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Answers

  • earthmoving1
    earthmoving1 Member Posts: 9 Novice Member Novice Member

    Hi Shaz, Sorry if I seem ignorant but I am not sure where to find 'Super Payroll Items' referring to the PAYG.

    THank you

  • earthmoving1
    earthmoving1 Member Posts: 9 Novice Member Novice Member

    Hi again Shaz, I worked out what you meant and that what was wrong. Thank you so much. You are a legend. Kind regards Wendy

  • Tania Gibson
    Tania Gibson Member Posts: 4 Novice Member Novice Member

    Hi I would also like the answer to this as I have 2 TFT ticked for an employee and what is shown on the ATO tax tables as tax applicable to the gross amount, appears to be the amount applicable to no tax free threshhold One of our employees has complained that she's paying too much tax. I also don't understand the response re 'Super Payroll Items' and the relationship with PAYG. thanks

  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer

    go to your payroll items - Employees - Manage payroll items - view/edit - look up the super item and see if PAYG is ticked. This could be why too much tax is coming out

  • Tania Gibson
    Tania Gibson Member Posts: 4 Novice Member Novice Member

    Hi Kris - no this wasn't ticked thanks. She does have a HECS debt, so this could be it.

  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer

    most definitely, you have that detail entered in her tax tab - correct?

    Does the other employee also have a HECS debt?

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,208 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    @Tania Gibson If an employee has a HELP (previously known as "HECS") debt, they will be required to make repayments via the tax system once their income exceeds the annual threshold.

    If this checkbox is ticked in their record - which it should be if they have it, other wise they will have tax payable at EOFY! - the system automatically annualises their pay each pay period to determine, pro rata, when the threshold is reached & will calculate the additional tax accordingly 😊

    There are separate tax tables for those with a HELP debt: https://www.ato.gov.au/tax-rates-and-codes/tax-tables-overview#ato-Taxtablesthatwereupdatedandapplyfrom1July2025

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