Setting up recurring tax adjustments is very similar to setting up recurring deductions and can be set to recur indefinitely or expire after a certain date or amount has been paid.
There are a number of reasons why you might want to setup recurring tax adjustments for an employee:
- There is an extra pay period in the financial year (ie. 53 weeks or 27 fortnights)
- Employees request additional tax to be withheld to cover an ATO debt
- Employees have an ATO approved variation to apply to their pay
- Employees want to pay additional amounts off their HELP or SFSS balances
To setup recurring adjustments you simply need to follow these steps:
- Open an employee file and select “Tax Adjustments” under the “Pay Run Inclusions” section of the employee menu
- To add a new adjustment click the green “Add” button on the adjustments screen
- To create an indefinitely recurring tax adjustment, fill in the amount, notes and select “Never” from the “When should this adjustment expire” drop down list.
You are also able to select a start date, and the amount per pay run can be chosen from 'Fixed', 'Percentage of Gross', and 'Percentage of Taxable Earnings'.
- To create a tax adjustment that expires after a particular amount, fill in the amount, notes and select “After the following amount has been reached” from the “When should this adjustment expire” drop down list. You will then need to specify the maximum amount to be paid for this adjustment
- To create a tax adjustment that expires after a particular date, fill in the amount, notes and select “After the following date” from the “When should this adjustment expire” drop down list. You will then need to specify the date that this adjustment will expire
- Once you’ve set up the tax adjustments for an employee they will appear in the pay run
If you have any questions or feedback on the recurring tax adjustments feature, please leave a comment or contact us on [email protected]