AccountRight Plus and Premier, Australia only

The PAYG Withholding payroll category is used to calculate PAYG on employee pays, for all tax tables (or tax scales) provided by the ATO.

The tax tables are already set up for you, and if the government changes them, we'll make available a software update that once installed, will update the tables for you.

How PAYG is calculated

You don't need to worry about this bit, but if you interested, here's how PAYG is calculated using the amounts shown in the PAYG Withholding category:

PAYG withholdings = (Weekly wage amount x a) - b

For example, using the values shown in the screenshot above, a weekly wage of $500 would be calculated as follows:

Weekly wage = $500
"a" coefficient = 0.3477
"b" coefficient = 43.69

so, ($500 x 0.3477) - 43.69 = $130.16

Note that the tax table information is set by the ATO. So, if you have any queries, please ask the ATO.

Set up the PAYG Withholding tax category

The only thing you can set up for this category is the Linked Payables Account. This is the account that will help you track the amount of PAYG that is withheld from employee pays. You shouldn't need to change this account, unless you really don't want to use the default one we suggested for you.

Set up your employees

For each employee, you need to specify which tax scale applies to them. You do this in the Payroll Details > Taxes view of their card.