ClockOn will calculate your employees PAYG tax amount for each payroll depending on their assigned tax category and the pay period (this is linked to the pay period in the rulesets) selected. However, if you need to do a back pay or some other pay adjustment, outside of the current pay period you might want to check the amount of tax that has been calculated.
NOTE: ClockOn only calculates tax for the payroll you are currently in and not over multiple payrolls for the same period
- You might have a processed a Fortnightly payroll for $1500 of gross wages with $192 of PAYG tax. However, you might have missed $150 of gross wages which would have made the PAYG tax amount $244.
- If you process the missed $150 in its own payroll this amount will not be over the tax-free threshold amount so no tax will be automatically added the to the pay adjustment payroll.
- To fix this you will need to create an Additional Tax allowance and add the difference ($52) to the payroll
When working out a Tax Adjustment (like a pay adjustment) there are 3 parts. These are:
- How much tax was paid in the already processed payroll - Print our the employee's payslip to see what has already been paid
- How much tax should have been paid with the pay adjustment - Use the ATO's tax tables to see what should have been paid
- Add this difference into the payroll you are processing - Create an allowance to modify the tax amount.
Creating an Additional Tax allowance
- Open up the employee's copy of their allowance set either from the employee's details screen on the pay tab or using the allowances icon in payroll
- Add a new allowance and set the following:
- Name: Additional Tax
- Type: Normal Allowance
- Amount: Set this to Fixed and leave it as $0.00 so you don't accidentally add this to every payroll after
- Per: Set this to your payroll period
- Process As: Additional Tax
- Click on Save
- When you are in payroll you can click on the -$0.00 value and enter the amount of tax that needs to be deducted. Just enter the value (eg. 52) and the allowance will take care of the rest.