How is PAYG calculated?You don't need to worry about this bit, but if you're interested, here's how PAYG is calculated using the amounts shown in the PAYG Withholding category: PAYG withholdings = (Weekly wage amount x a) - b Using the values shown in the screenshot above for an employee that has the No Tax Free Threshold selected and a weekly wage of $500. The calculation would be as follows: Weekly wage = $500 "a" coefficient = 0.3477 "b" coefficient = 43.69 so, ($500 x 0.3477) - 43.69 = $130.16 Note that when processing a pay using this example, the PAYG amount will be rounded to $131.00, or it might be different by a few cents if you've chosen to round the net pay (Setup menu > General Payroll Information). The tax table information is set by the ATO. So, if you have any queries, please ask the ATO (or use their Tax Withheld Calculator). |