AU Payroll - Include Salary Sacrifice amounts when calculating HECS/STSL deductions
When a staff member has a HECS debt or other Student Loan selected AND is salary sacrificing - the Student loan amount is only calculated on the GROSS amount AFTER the salary sacrifice however when the staff member has gone to do their tax return, they have a tax bill because the ATO looks at the taxable income as an amount INCLUDING the salary sacrifice so via Xero not enough PAYGW has been withheld - can this be amended?
3
votes
Liz Richards
shared this idea
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Jaclyn Stacey
commented
Xero appears to have fixed this as of mid-January 2024!
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Jaclyn Stacey
commented
This is critical. Xero is effectively under withholding leaving employees with a big tax bill come tax time.