Tax File Number for Minor

Samantha_9713244
Samantha_9713244 Member Posts: 59 Reckoner Reckoner
edited January 2024 in Reckon Payroll

Hi

In Payroll Premier I was able to use 333 333 333 for Minors who earn under the tax threshold and do not have a TFN

I have used this for new minor employees since moving to Payroll Premier but they are being deducted tax (at a higher rate)

Any minor employees that merged over from Payroll Premier are not being taxed (which is correct)

How do I avoid tax being deducted for these new minor employees?

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Best Answer

  • Rav
    Rav Administrator, Reckon Staff Posts: 14,645 Reckon Community Manager Community Manager
    Answer ✓

    Hi @Samantha_9713244

    What is the tax scale you've selected for these new employees?

    I've just created a new employee with tax scale 2: tax free threshold claimed..

    image.png


    ... and then created a test payrun with the below result. As you'll see there is no tax component calculated.

    image.png


    If you can give us a bit more info on the setup of the employee and the pay runs you're generating for them I think that will narrow down on what's occurring.

Answers

  • Samantha_9713244
    Samantha_9713244 Member Posts: 59 Reckoner Reckoner

    Hi @Rav

    Thank you - An oversight on my behalf, I had the Tax Scale loaded incorrectly.

    Thank you for taking the time to reply, I was able to pick up the error by referring to your answer

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