Employee tax codes
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
Best Answers
-
Hi Wendy
Check your Super Payroll Items arenβt ticked for PAYG
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
2 -
Glad you got it sorted Wendy βΊοΈ
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
0
Answers
-
Hi Shaz, Sorry if I seem ignorant but I am not sure where to find 'Super Payroll Items' referring to the PAYG.
THank you
0 -
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
1 -
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
0 -
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
1 -
Hi Kris - no this wasn't ticked thanks. She does have a HECS debt, so this could be it.
0 -
most definitely, you have that detail entered in her tax tab - correct?
Does the other employee also have a HECS debt?
1 -
@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 π
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
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
0
