Forum Discussion

Experienced Cover User

6 years ago

Why does payg not calculate for bonus payments or long service leave

Hello, I've recently upgraded from v19.14 to 2019.2.

Previously when using the old version whenever I was paying a bonus or long service leave, payg was automatically calculated now in the new version payg does not automatically calculate when putting in a bonus payment or long service leave.

The only way I figured around this was to try to trick the system by putting figures into base hourly wage and getting payg figure from there then inputing it manually.

Is there a proper way around this?

IanChait
6 years ago
Hi mrshanna

Open the Bonus and LSL Categories and check that they are not exempt from PAYG. To do this click the Exempt word/button when the category is open.

IanChait
Ultimate Partner
6 years ago
Hi mrshanna

Open the Bonus and LSL Categories and check that they are not exempt from PAYG. To do this click the Exempt word/button when the category is open.
- mrshanna
  Experienced Cover User
  6 years ago
  Thanks, don't know why I didn't click that button, I think I was staring at it for too long!!
bungy15
Ultimate Cover User
6 years ago
Hi mrshanna

The amount of PAYG to withhold from a bonus is determined by the number of pay periods the bonus relates too so it does need to be manually calculated.
For example, if the bonus is an end of year bonus the tax needs to be spread over 52 weeks
This link to the ATO website explains the calculations - PAYG withholding bonuses

Cheers
Tracey
- mrshanna
  Experienced Cover User
  6 years ago
  Thanks, if only it would automatically calculate, I was on the phone with the ato for a long time regarding this, it's such a complicated thing!!