Close

How satisfied are you with our online help?*

Just these help pages, not phone support or the product itself

0
1
2
3
4
5
Very dissatisfied
Very satisfied

Why did you give this rating?

Anything else you want to tell us about the help?

When adding an employee, enter their tax details on the Tax tab of their employee record. This ensures MYOB Essentials withholds the correct amount of tax from their pay.

You can access an employee's tax details via the Payroll menu > Employees > click the employee > Tax tab.

If you're in Australia

If you're in Australia

Tax file number declaration

Before filling in this tab, make sure the employee has provided you with a completed Tax file number declaration form (which you'll need to lodge online (not through MYOB Essentials) or post to the ATO). If they’re claiming any other variations or exemptions, they need to get the appropriate forms from the ATO, fill them in and give them to you. These forms will contain all the information you need when filling in details on this screen. The Tax file number declaration form can be obtained from the ATO. See the ATO website for more information.

To complete this section, simply copy the employee’s answers from the numbered questions on the Tax file number declaration form into the matching numbered fields on this page.

Tax file number declaration form changes

The ATO has recently updated the Tax file number declaration form and we're updating the question numbers in MYOB Essentials to match.

You'll still be able to complete the details in MYOB Essentials using the information provided on the form—which now looks like this:

example ATO form

Withholding variations (Miscellaneous)

If the employee is eligible for a withholding variation, they’ll have arranged this previously with the ATO. To claim the variation, they need to give you a Withholding variation declaration form, available from the ATO website. The form needed will depend on the type of variation.

Enter the variation in MYOB Essentials as a flat rate of tax to be applied to the employee's gross pay.

If you're in New Zealand

If you're in New Zealand 

Tax code declaration

Before filling in this tab, make sure the employee has completed and given you an IR 330 Tax code declaration form. They can download this form from the IRD website.

If they’ve got a special tax code or are required to make student loan repayments, they may also give you a Special tax code or student loan repayment certificate (IR23). These forms will contain all the information you need when filling in the details on this screen.

To complete this section, simply copy the employee’s answers from the numbered questions on the Tax code declaration (IR330) form into the matching numbered fields on this page.

Questions 1 and 2 on sample IR330 form

Tax rules for primary and secondary school students

There are different tax rules for primary and secondary school students. Select this option if the employee is currently a student in primary or secondary school.

For more information about tax rules for primary and secondary school students, see the IRD website.

Special tax code or student loan repayment form

Your employee might give you a Special tax code or student loan repayment (IR 23) certificate, which authorises you to deduct tax at a different rate, or not at all. Copy the information about the deduction rates from the form into the matching fields on this screen.

sample IR23 certificate

Note that you must see this certificate before you can change the rate at which PAYE is deducted from your employee’s pay.

Compulsory extra deductions (SLCIR deduction)

If your employee hasn't had the right amount of student loan repayments deducted from their pay, you may be required by the IRD to make compulsory extra deductions. See the IRD website for more details.

If an employee's tax code is set to a student loan code (e.g., S SL, ME SL), an SLCIR deduction checkbox will appear below.

Check the box and enter the required percentage deduction in the Percentage (%) field.

FAQs


How can I deduct extra tax for an employee each pay?

How can I deduct extra tax for an employee each pay?

To deduct extra tax for an employee, overwrite the PAYG/PAYE figure when processing their pay. For example, to deduct an extra $20 tax from a pay, click into the PAYG/PAYE field and overtype the amount to include the additional $20.

The tax should be the last thing you change on a pay as any other changes will force a recalculation of the PAYG/PAYE figure.

See it in action:


animation showing tax value being increased