How to take extra tax out of employee's wage?

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  • Updated 1 year ago
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  • (Edited)
Hello everyone :)

I have an employee who would like me to take an extra $25.00 out of her fortnightly wage. She would like this amount taken out as a way of forced savings/extra tax rebate as per her accountants advice. I have typed 25.00 in the "extra Tax" box in her employee profile, but it doesn't make a difference to her pay? Anyone have any idea why, or what I'm doing wrong?

 Thank you all in advance :)

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Naomi Arthur-Smith

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Posted 1 year ago

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Shirley Ingle, Accredited Partner

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Hi Naomi  If you run a dummy pay, check the tax, it should show the extra tax taken out. The extra tax will add to whatever the tax is for the Gross Wages for the pay. Any changes take place at the next pay run, not previous pays.
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Naomi Arthur-Smith

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Thanks for your reply Shirley :) I did do that and tax stays the same at $210. I just can't understand why its not adding on??
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Kevin Russell, Accredited Partner

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Try it in the sample file. Does ir do tge same thing?
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Shirley Ingle, Accredited Partner

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Hi Naomi  For $210 tax the gross wages is around $1080.

Does the employee have salary sacrifice?


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Naomi Arthur-Smith

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I'm sorry Kevin - would you mind explaining what a "sample file" is?
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Kevin Russell, Accredited Partner

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Sure Naomi. You can set this up yourself or I can send you one call me if you think it will help. 0407744914
(Edited)
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Shirley Ingle, Accredited Partner

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Hi Naomi  Apologies, the pay is fortnight so the gross wages would be between 1552 and 1556.00. Is that correct?
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Naomi Arthur-Smith

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Gross is $1553.89 - That's correct :)
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Shirley Ingle, Accredited Partner

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Naomi  Is the tax coming up at $210. Did you run a dummy pay just for this employee after you had entered the $25 extra tax in the record. Instead of checking in a sample file, test one of the other employees to see if the extra tax works for them. If it does, then perhaps you should run a rebuild of the file. There may be a corruption in the employees record. Also I would check how super is set up.  

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Naomi Arthur-Smith

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Yes Shirley I did try all of that, and it still didn't change..

Oddly enough, I just tried it on my own pay and it did in fact work. I went back to the employee and tried hers again and hers also worked?? Maybe it was Gremlins? Not sure but it works now :) 

Thanks Shirley & Kevin for all of your helpful suggestions :)