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Aileen_6300's avatar
Aileen_6300
Experienced Cover User
3 years ago

Payroll and PAYG tax

Hi there, I have an employee who selected tax free threshold + STSL on their TFN Declaration form.  This was appropriately set in MYOB however, at the end of the year she received a big tax bill.   S...
  • gavin12345's avatar
    gavin12345
    3 years ago

    Hi Aileen_6300 

     

    Provided you have set the correct tax table on the employee's card (just above the Extra Tax field), MYOB will deduct  tax for the student loan provided her income level is high enough (approx $47k per annum). If you have set Extra Tax this will be added to the calculation. There is nothing more you need to do.

     

    There are many reasons why someone gets a tax bill, for example she might have other earnings such as interest or dividends or other income that is not taxed. All you can do is ensure you have set things up correctly and that MYOB is deducting the correct amount. There are printed tax tables available from the ATO as well as online calculators which show you how much should be deducted. If MYOB is not deducting the correct amount then you have something setup incorrectly, for example you might not be taxing an allowance by treating it as exempt from PAYG.

     

    So check the MYOB calculation again the ATO tax tables for employees with Student loans. The MYOB calculation should be higher due to the Extra Tax setting.

     

    Regards

    Gavin