Employees PAYG not calculating

We have random employees that are not having tax withheld in their wages.

They are over the amount to attract tax. But they are having none taken out.

I have gone through their profile and everything is the same as others that it is not happening to. I have checked all super profiles and they are correct also.

It is not all employees, just one every here and there. It is really annoying as I don't know how to fix it or explain to the employee why it has happened.

They are all casual employees but have been working for us for years. The last time this happened was a year or 2 ago. I rebuilt the employees' profile and stopped using the old one. Now I have another employee.

As you can see it's $950 worth of wages for the week and no tax.

How do I fix this.

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Tanvi_kataria

Hi @Capricorn Stages

In regard to the Pay items that you have added to the Pay run - "MOPT Rigging", can you please check if you have PAYG Tax enabled for that item.

It would be really helpful, if you can share some screenshot of the Item set-up. Along with that, please check the Tax details for the affected Employee.

Feel free to reach out for any concerns. Thank you!

Regards

Tanvi

Capricorn Stages

Yep all good there

And his tax is all good too

Acctd4

@Capricorn Stages

If the employee's tax configs are correct, it will likely be that one (or more) of your Wage Payroll Items is not ticked for PAYG.

Check each of the affected employees' usual Payroll Items - You may find one or more are a common denominator, so check that one/those first 😊

Capricorn Stages

I have checked them all and they all have PAYG and State tax. Nothing has been changed.

I also checked the staff member and it dates back to 2 Aug 2023 that this has been happening. (He has only just noticed).

He has some payrolls that have taken tax but like minimal. As you can see below he should have had like $500 or something like that out of the wage. Not $4

Acctd4

@Capricorn Stages Check your Rigger hourly … & Prime Super Payroll Items. Also check the PAYG Tax one as it may be that some are not ticked in the list there:

It's a little difficult to determine without seeing the set up but it will definitely be Payroll Item config-related.

Happy to investigate further & get to the bottom of it for you if you want to contact me direct 😊

Capricorn Stages

I have checked each one and they are all ticked to be subjected to PAYG.

All the Super items dont have ticks next to them.

If it was the payroll item it would be happening to all my staff that use that wage type but it is only happening to this staff member and one other staff member that it happened to over a year maybe 2 ago.

This is why I am getting frustrated as it is only this one staff member at the moment.

John Graetz

Hi. I think I can see where your problem might be. In the first example of the pay that you showed above, you mentioned that the payment was for a week, but the period that the pay covered was actually showing as being for a four week period. But more to the point, if it was actually for a period of a month, then there is no tax payable on the amount of pay. Now by itself, that may not mean anything from what I can see by doing some testing, if the pay run was actually for say a weekly or fortnightly pay run. More importantly though could be how you have set up the employee. In the employee setup, in the top line (right hand side) there is a setup for Payroll Schedule. which gives the ability to nominate the length of the particular pay for any employee. It is possible that you item that you have selected for this employee could specify that it relates to a monthly pay and if this is the case, my belief is that tax will be calculated based on that period of time, irrespective of whether or not the pay covered 1 week, 2 weeks or 4 weeks.

John L G

Acctd4

@John Graetz …. Some good points there!

The system looks at the pay period to determine the PAYG Tax calculation, as it gets this from the relevant tax table (eg weekly, fortnightly, monthly etc)

Payroll Schedules are simply "list templates" & are specifically for when an employer has different pay runs (eg sales staff that are all paid weekly + managers who are paid a monthly salary, for example) In that scenario, you might have 2 Payroll Schedules … 1 Weekly (for your sales staff) & 1 monthly (for managers) Payroll Schedules don't impact any payroll amounts or calculations. Many users automatically use Payroll Schedules because they think it's required, but when you only have one pay run frequency anyway, using these can cause confusion when a pay is made early, late or out of sequence (eg a termination payment) Therefore, I recommend ONLY using Payroll Schedules IF you have multiple pay run frequencies.

The fact that @Capricorn Stages's pay periods in the screenshots are set to a month would definitely explain why no PAYG is calculating on those particular Paycheques as the TFT maximum monthly gross pay before tax kicks in is around $ 1,577 !

The fact that $ 4 PAYG Tax is calculating on the 2nd (monthly) Paycheque of $ 1,300 Gross may indicate that there are definitely some configuration issues within the payroll setup as it should still be $ 0 on that amount ! 😬:

John Graetz

Hi Shaz. Sorry to disagree with you, but I believe that my testing is telling a different story. Here is what my testing has shown. I chose an employee who gets paid fortnightly and has been setup with a payroll schedule of fortnightly. I ran an unscheduled pay run for this person and despite changing the date range to a period of one month, the tax amount did not change and still calculated as if for a fortnightly pay. That meant that changing the dates during the processing, made no difference. I then changed the payroll schedule for this employee to monthly and ran an unscheduled pay run. The tax calculated correctly for a monthly pay, not a fortnightly one. I then changed the date range on the pay that I was processing to a period of two weeks, but this did not cause the calculation of tax to change from a monthly to fortnightly period. Based on my testing, it is the payroll schedule which determines which tax table to use, rather than the date range of the pay. Perhaps there is something specific with the way that I have setup pay schedules which might be influencing this.

John L G

Acctd4

The Payroll Schedules are set up to activate to a particular frequency, based on a specified pay period end date.

Therefore, a selected "Schedule" (template frequency) will override any manual date range change on the Paycheque itself. Even if the Schedule is deleted on that particular Paycheque, because the employee is in the set Schedule template anyway, the system can't always recognise manual editing (which is why they can be problematic!)

So the Payroll Schedule itself isn't directly driving the PAYG Tax calculations - as it's not linked & configured with the PAYG tax tables - but rather the Schedule allocation (of a pre-set "template frequency" setting) is what's doing that (if that makes sense!)

John Graetz

Thanks for the added clarification, Shaz. What we now have is more than one alternative for Capricorn Stages to investigate as to what setup they have used or are using and how to resolve the problem they are experiencing. John L G

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