AU Payroll - Option to enter withholding tax variation as an additional percentage
The witholding variation should be on top of the existing PAYG calculation not overrides it, as it currently does. If an employee completes a MyGov employee Tax Form and notes they want an additional % amount variation withheld - it should be on top of their existing PAYG tax, not instead of it. There is no other option to put in a percentage amount in XERO.
Or allow the upward variation amount to be a percentage amount - not just a fixed amount.
The screenshot attached shows this employee should be paying tax on the full amount (no threshold claimed) but the pay run only calculated a total of 10% tax.
 Racheal Leigh
    
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Racheal Leigh
    
 shared this idea
      
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       Sports Admin
    
 commented Sports Admin
    
 commentedI've just had 2 employees request upwards withholding as they both got a shock after submitting their tax returns. Both are casual and work multiple jobs and the ATO 'no tax-free threshold' rate wasn't enough to cover them. As they work for us intermittently, the ability to withhold an additional percentage would be useful. Thank you! 
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       Dale Beven
    
 commented Dale Beven
    
 commentedsurprised this is not already an option. please add asap, very important 
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       John Lewis
    
 commented John Lewis
    
 commentedSame for a % increase due to an ATO approved Medicare levy variation. Having to manually calculate taxes in a product you pay a premium for is slightly ridiculous 
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       James Stewart
    
 commented James Stewart
    
 commentedIt's really not a complex thing to add... 
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       Kellie Buck
    
 commented Kellie Buck
    
 commentedI've just had my first official request for a withholding % and have come across this thread. Please add this into Xero. If its been raised such a long time ago and seems to be something that employees can generate freely in MyGov, it needs to be addressed as a matter of urgency 
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       Melanie Brookman
    
 commented Melanie Brookman
    
 commentedHow is this still an issue guys. Please may this be assessed and updated ASAP. Raised over 2.5 years ago and still not addressed. 
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       Nikki Tran
    
 commented Nikki Tran
    
 commentedIt's been over 2 years since the request was raised and still no action from XERO! Surely it's not that hard! 
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       Maria McAdam
    
 commented Maria McAdam
    
 commentedIf ATO provides it as an option, it should be enabled in Xero. 
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       Fiona Campbell
    
 commented Fiona Campbell
    
 commentedPlease stop making us calculate this manually every fortnight! 
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       Wayne Derrick
    
 commented Wayne Derrick
    
 commentedAgree, this needs to be actioned ASAP. 
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       Rachel Robertson
    
 commented Rachel Robertson
    
 commentedThis is a really important feature to me - doing payroll for 30 people, I CANNOT manually calculate taxes for 5 of them. Xero makes everything else so easy but this is incredibly difficult. If ATO provides it as an option, it should be enabled in Xero. 
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       David Bowler
    
 commented David Bowler
    
 commentedWhy has this not been done yet? Pretty important feature to not be manually calculating and messing up pays. I bet your programming would fix it the day that it impacted them. Not real happy that this is still ongoing nearly 2 years on 
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       Henriette Csano
    
 commented Henriette Csano
    
 commentedThis is really non-compliance by Xero. If a government document provides you with this option then it should follow that the software should allow this. 
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       Jenan Bakka JP CPA
    
 commented Jenan Bakka JP CPA
    
 commentedThis feature is desperately needed. I can't allow my clients to manually create an adjustment to the payroll each week and risk them mis-calculating the amount to be withheld. Aside from the fact that it's just cumbersome, it's just highly erroneous and their staff won't appreciate the wrong amounts being withheld each week. When will Xero action this? 
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       Meredith Hammond
    
 commented Meredith Hammond
    
 commentedFirst time i have had an employee request a % amount to be taxed over and above his normal. Cant believe that Xero does not allow for this calculation. Manually having to calculate this percentage every pay week is simply not OK. Fix it. if the ATO allows for employees to do this then the accounting program should also comply. 
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       Loretta Zagon
    
 commented Loretta Zagon
    
 commentedCritical!! Absolute achaic that Xero can't OR won't action this ASAP. These posts below are old. We as clients or Xero pay big $$ and not impressed that Xero can't action what is requested through an employee's TFN. 
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       Carly Maddison
    
 commented Carly Maddison
    
 commentedThe ATO specifically provides this option to employees when completing their online TFN Declaration, which is then linked electronically with the business. If it is provided at the ATO level I feel like it should absolutely be included in all payroll software; I now have to manually calculate an employee's tax every week and hope I don't muck it up because they have requested via the ATO's form an additional % PAYG and their pay varies from week to week given that they are casual. 
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       Aideen Tierney-Pelc
    
 commented Aideen Tierney-Pelc
    
 commentedThis is so important. I have a Client with 2 employees with varying wages each fortnight so they want to pay a % of extra tax based on their earnings. Having to do it as a payroll deduction is not feeding into the Activity Statement or getting reported via STP. I have to override the auto feed on IAS and BAS at the ATO - this is going to cause issues at EOFY trying to reconcile PAYG reported via STP vs what was actually collected. We need the option of % for extra tax fixed urgently. Other softwares can do it - why cant Xero??? 
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       Bernadette Howard
    
 commented Bernadette Howard
    
 commentedWould like "upward variation amount to be a percentage amount" be actioned. Other accounting software providers offer this. 
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       Sue Boersma
    
 commented Sue Boersma
    
 commentedcritically important has caused some of our clients to not want to change to xero