Use the Tax Pay Component to create tax payments for a fixed amount.
Important!
If an amount is entered, then that amount is in addition to standard tax, but if a percentage is entered, then it will override the standard tax rates.
Tax Setup Guide
| Field | Description | Manual PAYG (extra payment) |
Manual PAYG (different %) |
|---|---|---|---|
| Pay Component Type | Defaults depending on the button selected on the employee record | Tax | Tax |
| Pay Component Sub Type | select ether salary or wages. This will affect how timesheets appear in the pay run. | Manual PAYG | Manual PAYG |
| Description | Defaults from pay component sub type | Manual PAYG | Manual PAYG |
| UOM | Defaults from pay frequency | Month | Month |
| Quantity | if you enter 0 you will need to enter the number of hours during the pay run | 1 | |
|
Rate |
Amount you want to pay per pay frequency | $500 | |
| Amount | Quantity * Rate | $500 | |
| Amount Per Period | Amount / Number of Periods | $500 |
|
| Is Percentage | Signifies if the calculation is based on a percentage and may need recalculating on pay slips | Unmarked | Marked |
| Percent Type | Available if you select Is Percentage | Taxable Income | |
| Percentage | Available if you select Is Percentage | 25% | |
| Payee | Select the Vendor that will receive this payment | Australian Taxation Office | Australian Taxation Office |
| Balance Sheet Account | Defaults from the vendor selected | PAYG Payable | PAYG Payable |
| Start Date | Start date that this pay component becomes valid | 01/07/16 | 01/07/16 |
| End Date | Leave blank or enter end date if variation is valid for a set period only. | 30/06/17 | |
| Department | Enter if required | ||
| Class | Enter if required | ||
| Location | Enter if required | ||
| Range Amount | Enter maximum amount – when reached it won’t deduct any more | ||
| Reference | Reference number from ATO – and attach file | ||
| Current | Marked | Marked | Marked |
| Loading Rate |
Click on Save
To add another Pay Component, go back to step 11. Add Pay Components.
Or, move onto step 12. Finish Up.