Title: Release Notes: October 2-3, 2025 - Payroll Tax Calculation Fixes (Canada & Australia)
Applies to: All Payroll Customers in Canada & Australia
🔧 Key Actions After Updates: Understanding How Bundle Updates impact roles and Center Tab
Overview
This release includes critical corrections to tax calculations for both Canadian and Australian customers. For Canada, we have fixed an issue regarding TD1 Basic Personal Amount (BPA) claims. For Australia, we have fixed a bug related to Study and Training Support Loans (STSL) that either caused pay runs to fail or resulted in employees being over-taxed for payruns between 24th of September and 2nd of October.
Please see the region-specific details below.
For Australian Payroll Customers
Bug Fixes & Improvements
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STSL Calculation Correction: Fixed a critical bug related to the recent legislative changes for Study and Training Support Loans (STSL). This bug caused two potential outcomes:
- For some employees, it resulted in too much tax being withheld (over-taxed).
- System Performance: Enhanced system stability and performance for the Australian payroll region.
Impact
- This fix is prospective and ensures all future pay runs will calculate STSL tax deductions correctly.
- Important: The system will not automatically refund employees who were over-taxed in previous pay runs.
Actions
For Over-taxed Employees: We recommend you review pay runs processed between the effective date (September 24th) of the STSL legislation and October 2nd. The employee will receive the amount back in their end-of-year tax return from the ATO.
For Canadian Payroll Customers
Bug Fixes & Improvements
- TD1 Claim Amount Correction: Corrected an issue identified after July 1, 2025 mid year changes. We have corrected an issue where custom Basic Personal Amount (BPA) claims on TD1 forms submitted after July 1 were being ignored. This resulted in some employees claiming “0” basic exemption. Affected employees can now submit a new TD1 form to request that additional tax be withheld to make up for the shortfall.
- System Performance: Enhanced system stability and performance for the Canadian payroll region.
Impact
- This fix is prospective, meaning it applies to all new or updated TD1 form entries going forward.
- The system will now correctly retain and apply the exact claim amount entered by an employee.
- Important: Pay runs processed while this issue was active will not be automatically recalculated. Employees impacted by this issue may have had less tax deducted than intended.
Actions
- We recommend you identify any employees who submitted a new Federal TD1 form with a claim amount different from the standard BPA after July 1, 2025.
- Please inform these employees of this correction.
- Employees who wish to make up for the tax shortfall can submit a new TD1 form and request an additional amount of tax to be deducted from their future pay which will result in the system withholding more tax per pay. This doesn’t retroactively change past pays, but it helps offset the shortfall so the employee doesn’t end up with a large tax bill at year-end.