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
shared this idea
Hi everyone, thanks for your feedback on this. We appreciate you sharing how important it is to be able to add an additional percentage on top of PAYG.
As you’re aware, you can increase the amount of tax withheld each pay, however the figure must be a fixed amount.
We understand some of you have been using workarounds like manual calculations or withholding variations, which create challenges if employees earnings are not fixed.
While this feature isn't currently on our roadmap, we've updated this idea to Accepted, so that it’s up for formal consideration.
We're grateful for your continued input as it helps us understand what matters.
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Loretta Zagon
commented
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.
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Carly Maddison
commented
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.
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Aideen Tierney-Pelc
commented
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???
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Bernadette Howard
commented
Would like "upward variation amount to be a percentage amount" be actioned. Other accounting software providers offer this.
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Sue Boersma
commented
critically important has caused some of our clients to not want to change to xero
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Celeste Lambie
commented
this needs to be done asap please
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Karen Tebbet
commented
This is very important, especially when people want to take apply the medicare surcharge to their pays.
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Jennifer Hofsteede
commented
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!