Payroll tax deduction incorrect

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  • Updated 3 weeks ago
Payroll tax calculation for casual working 38hrs @ $40 usually shows tax deduction of $466, but two separate weeks it calculated tax at $489. Both of these differ with the ATO calculator rate as $363. TFN is provided, tax exempt rate, no HELP or HECS etc, simply basic employee status.

WHY INCORRECT ???

Also, when entering another casual with just $200 or $400 per week it calculates more than $0 tax deduction.
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Peter Collett

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Posted 3 weeks ago

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Kevin Russell, Accredited Partner

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Do you mean PAYG tax? Have you tried this in the test file first? 
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Felicity Bleckly

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Could it be calculating tax for other periods as well? For instance SGC doesn't calculate until pay reaches $450 and then it calculates on the total amount earned in that month. And perhaps also check your payroll items to makes sure they have the right designation. And...also check whether your system calculates for the right pay length. for instance if you pay fortnightly but your system (or perhaps even some of your employees) are set up for weekly then the tax will be calculated as if the pay us for one week and not two?
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Kevin Russell, Accredited Partner

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Flick PAYG tax doesn't work that way. Its not like SGC at all. 
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Peter Collett

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PAYG. Weekly payrun, and we have checked the dates are correct (I.e. 7days consistently).
Employee has been entered as 38@$40 since March, but we noticed 2 payslips of the last 5 were different.
Why is the tax deduction not same as ATO calculator for weekly x52 ?