Forum Discussion

Louise2's avatar
Louise2
Experienced User
7 days ago

Foreign income + AU

We have an Employee who is on a work visa for period of 4 years and is originally from our Japan office (so I guess similar he is here on a secondment) - we pay part of his salary from Australian office office and he also receives an income from Japan office + social security in Japan. 

 

As he gets taxed on both his overall income AU + Japan, I would potentially like to increase his PAYG on his fortnightly pay to cover salary (including part paid from Japan office) see attached an example; 

 

Anyone with some suggestions of how I would get around this ?

thanks

 

 

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    7 days ago

    Hi Louise2,

     

    I understand that managing increased PAYG deductions for income sourced from both Australia and Japan can be confusing. To address the situation with the employee on a work visa who is receiving income from both the Australian and Japan offices, you can increase the PAYG withholding on their fortnightly pay to cover the total salary, including the part paid from the Japan office. Here are some steps and considerations to help you manage this:

     

    • Adjust PAYG Withholding: You can manually increase the PAYG withholding amount when doing payroll to account for the additional income from the Japan office. This ensures that the employee's tax obligations are met based on their total income.

    However, it would still be best to speak to your accountant regarding this as they can provide you with more information.

     

    Best regards,

    Doreen

  • Louise2's avatar
    Louise2
    Experienced User
    7 days ago

    thank you Doreen.

    To confirm I have had discussion with accountant and this was one of options discussed, in saying that unfortunately they were unable to offer assistance with entry side of things, if I manually adjust PAYG it reduces his net amount 

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    7 days ago

    Hi there Louise2,

     

    There's an option on how you can process additional PAYG for the employee. You can add an extra tax amount directly on the employee's card. Here’s how you can do it:

     

    • Open the Card File and edit the employee's card.
    • Select the Payroll Details tab.
    • Select the Taxes tab.
    • Enter the extra PAYG deduction amount in the Extra Tax field.
    • Click OK.

    The calculated PAYG withholding amount will now be increased by this amount in the employee's pays and will be reported correctly to the ATO for STP.

     

    Best regards,

    Doreen

    • Louise2's avatar
      Louise2
      Experienced User
      7 days ago

      perfect thank you - I will give this a go. 

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    7 days ago

    Hello Louise2,

     

    Sure thing! Don't hesitate to create a post again if you encounter any issues.

     

    Best regards,

    Doreen

    • Louise2's avatar
      Louise2
      Experienced User
      4 days ago

      thank you Doreen. I have followed steps above however when I add the additional tax it reduces the overall net amount.

      I have left the original wage amount and PAYG as it was and only added the extra tax 

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    3 days ago

    Hello Louise2,

     

    Thank you for following the steps provided. If adding the additional tax is still reducing the overall net amount, please reach out to our support team directly. You can reach them on livechat via MOCA through myob.com/support or by submitting a case via My Account.

     

    Best regards,

    Doreen

  • Louise2's avatar
    Louise2
    Experienced User
    2 days ago

    thank you :) I have reached out to support team and hopefully will be able to assist me with this. 

    regards

    Louise 

    • Doreen_P's avatar
      Doreen_P
      MYOB Moderator
      2 days ago

      Hi Louise2,

       

      Sure thing. Thanks for reaching out directly to our support team. If ever you encounter any issues in the future, don't hesitate to create a post again.

       

      Best regards,

      Doreen