PAYG on JobKeeper top up

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  • Updated 2 months ago
I am about to run an interim payroll to pay top up to the employees who earned under the $1500 gross in the first eligible payrun. I have created the Allowance in Reckon Accounts as per the instructions.  But after entering a few of them, I noticed the tax being applied to individual staff was seemingly a bit random...am I supposed to be manually calculating the PAYG amount for each person?  And if so, do I use the PAYG witholding table for the top up amount only? Very confused now :(
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Julie Holloway

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  • confused

Posted 2 months ago

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Linda Benfield, Accredited Partner

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Hi Julie, 

Yes the tax needs to manually adjusted for each "Topup" pay run.

Weekly tax on $750.00 is $96 Net $654

Fortnightly tax on $1500 is $192 Net $1308

(It's burned into my brain now)

So if you originally paid someone $300 for a week and the tax was Nil
then
The "Topup" is $450 Tax is $96 and net is $354.

Hope that helps

Linda
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Linda Benfield, Accredited Partner

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Sorry just read that your fortnightly

So 

Fortnightly tax on $1500 is $192 Net $1308


So if you originally paid someone $600 for a fortnight and the tax was Nil
then
The "Topup" is $900 Tax is $192 and net is $708.00

Linda
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Glenda Veale

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Or you could go back, unlock the payroll run the first fortnight, add the jobkeeper makeup amount and the PAYG and super will be calculated.  Then you need to pay the employees the difference between what they were paid and the new net pay.
(Edited)
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Julie Holloway

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Thanks folks. 
I hope I have it sorted now... but I guess only time (and the ATO ) will tell :) 
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Sarah Jane

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I undid the pay run and I kept getting $1066 net instead of $1308 net... was that the same kind of issue?