Payroll tax
Hi All,
I am new to payroll tax and have two questions:
1. Does setting the MYOB file up for payroll tax have the capacity to include contractor payments processed via Purchases, (RCTIs)?
2. Once paid, what do you code the payroll tax payment to?
Thank you in advance. Any help welcome.
Fran :)
Hi FWeir
Payroll Tax can be set up within a company file via Setup>>General Payroll Information>>Set Up Payroll Tax. Within, this window you can select the required state and other key pieces of information relevant to that payroll tax.
One of the options that the user would need to define is all the payroll categories that are needed to be included in Taxable Wages. As the system will use the payroll categories amount to determine the Taxable wages amount, extra values such as those coming from purchases will not be able to be included in that component.When you have added that information, you would be able to run the Payroll tax report - Reports>>Payroll>>Payroll Tax>>Payroll tax for full calendar month periods to determine the Payroll tax amount.
In terms of recording the payment of that Payroll tax, typically you would record a Spend Money transaction to an expense account dedicated to account for that payroll tax. Although, in saying that, we do recommend reaching out to your accounting advisor to ensure that you are selecting the appropriate account for your reporting requirements.Note: This is post is referring to State or Territory Payroll Tax, PAYG withholding is calculated and determined differently within the software. More information on this topic can be found on Help Article: Payroll tax reporting
