AU Payroll - Shearers tax scale
Currently you are able to select the tax scale Horticultural/Shearers but there is no default tax rate attached. Apparently if employee falls under this scale you need to select for reporting to ATO which means you have to then manually calculate tax when you do the pays which is not possible if you have multiple employees knowing which employee wants what rate as they all do not use the default. This also leads to errors if not picked up it doesnt calculate automatically. May I suggest that we urgently attention to have the default ATO tax scale rate included with the option of selecting withholding variation (yes/no) allowing the ability to enter a varied rate which is then picked up for each individual employee and calculcated correctly. The need for answering tax free threshold is then redundant also in this case and should be greyed out. This is a critical upgrade needed now. otherwise we have no option than to revert to just using withholding variation instead of marking employee as shearer.
Loretta Sutcliffe
shared this idea
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Loretta Sutcliffe
commented
This issue is causing confusion to xero users. Ive recently had a client enter a new employee and thought by selecting the shearers rate it would automatically calculate the tax and didnt realise when they posted and paid the employee that they deduct 0 tax.
Xero this needs urgent attention it should be set at the minimum rate of 13% as per ATO guidelines to avoid these types of errors. -
Emily Sinderberry
commented
Agree!
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Loretta Sutcliffe
commented
This is critical update as affects everyone business employing under the shearers or horticultural awards.