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 tax scales in the PAYG Withholding category :(Payroll command centre > Payroll Categories > Taxes tab > click the blue zoom Image Added arrow to open the PAYG Withholding category). Image Added
PAYG withholdings = (Weekly wage amount x a) - b Using the values shown in the screenshot above (which isn't using the latest tax tables) for an employee that has been assigned the No Tax Free Threshold selected tax table and a weekly fortnightly wage of $500$1500. The calculation would be as follows: Weekly Fortnightly wage = $500$1500 "a" coefficient = 0.34773450 "b" coefficient = 43182.697504 so, ($500 $1500 x 0.34773450) - 43182.69 7504 = $130$334.167496 Note that when processing a pay using this example, the PAYG amount will be rounded to $131$334.0075, 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). |