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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.

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Racheal Leigh shared this idea  ·   ·  Report…  ·  Admin →
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  • Rachel Robertson commented  ·   ·  Report

    This 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.

  • David Bowler commented  ·   ·  Report

    Why 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

  • Henriette Csano commented  ·   ·  Report

    This 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.

  • Jenan Bakka JP CPA commented  ·   ·  Report

    This 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?

  • Meredith Hammond commented  ·   ·  Report

    First 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.

  • Loretta Zagon commented  ·   ·  Report

    Critical!! 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.

  • Carly Maddison commented  ·   ·  Report

    The 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.

  • Aideen Tierney-Pelc commented  ·   ·  Report

    This 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???

  • Bernadette Howard commented  ·   ·  Report

    Would like "upward variation amount to be a percentage amount" be actioned. Other accounting software providers offer this.

  • Sue Boersma commented  ·   ·  Report

    critically important has caused some of our clients to not want to change to xero

  • Karen Tebbet commented  ·   ·  Report

    This is very important, especially when people want to take apply the medicare surcharge to their pays.

  • Jennifer Hofsteede commented  ·   ·  Report

    We need to be able to use a percentage for an upward variation as well, rather than an amount. At the moment the percentage is only available under the downward variation. Our staff are casuals so having to calculate the percentage and enter it manually for every pay run is a pain & increases the margin for errors. It would be really appreciated if you could add the percentage option to for the upward variation as well PLEASE. Thank you!