Manually increase PAYG for one employee

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MM_7769277
MM_7769277 Member Posts: 115 ✭
edited January 2020 in Accounts Hosted
I have one employee who received a small pay rise earlier in the year which pushed him into a higher tax bracket and triggered a massive HELP bill.

To avoid this happening in future, the employee wants me to "take out" more tax from his pay each fortnight.

How can I do this without having to manually type over the tax field each pay cycle? Maybe create a Deduction and point it to PAYG Withholding Payable? Would that work?

I'm on Reckon Hosted.

Thanks in advance,
MM

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  • John Gibson
    John Gibson Accredited Partner Posts: 47 Accredited Partner Accredited Partner
    edited July 2017
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    Increasing tax withheld will NOT reduce overall taxable income and HELP debt will remain payable (though your way would compensate somewhat)

    .....what you need to do tick the HELP debt box in the employee set-up so that the tax calculation is automatically higher - go to employee set-up, Payroll & Compensation Info, select Taxes, tick HELP debt. Note that this will only change tax withheld from today onwards, so if you need to adjust for past 4 months you could also add (eg) $20.00 into the Extra Tax box in the same screen

  • MM_7769277
    MM_7769277 Member Posts: 115 ✭
    edited January 2017
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    It's already ticked.
  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
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    In the employee setup under 'payroll and Compensation info' click on the 'taxes' box and in there you can choose to add extra tax or tick the HELP box which will automatically adjust his PAYG rate
  • MM_7769277
    MM_7769277 Member Posts: 115 ✭
    edited January 2017
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    Thanks Charles. That "extra tax" field, what period is that? Per pay cycle or per annum?
  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
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    per pay

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