Withholding Variation

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  • Updated 4 weeks ago
I have received a letter from the ATO regarding a withholding variation for one of my employees. How do  I vary the withholding rate in Reckon Accounts Hosted?
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Nicole

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Posted 1 month ago

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Linda Putland, Accredited Partner

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Go to the Taxes tab for that employee - there are various options there to add or deduct set amounts, change the percentage etc...
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Nicole

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Thank you for replying Linda. I did go into the taxes tab and entered 18% in the tax percentage box (which is what the withholding variation is). When I go to process a payroll, the PAYG tax is the same amount as before I entered the 18%. i thought the amount of PAYG would have changed given I have added the 18%?
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Nicole

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Linda quick question - do I need to change the tax code to # 1 - NoTFT?
If I leave the code as TFT, will it just calculate PAYG tax rates automatically despite me putting the 18% in?
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Robyn Kelly (Partner), Accredited Partner

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You need to change the Tax Scale to "Voluntary/Flat rate".
Regards, Robyn Kelly