Forum Discussion

mrshanna's avatar
mrshanna
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 vers...
  • IanChait's avatar
    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.

     

     

bungy15's avatar
bungy15
Ultimate Cover User

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's avatar
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!!

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