AU Payroll | Add opening balance for Working Holiday Maker tax rate
Please add an opening balance for the Working Holiday Maker tax rate
When a Working Holiday Maker (WHM) reaches the earning threshold of $45000 they must be taxed 32.5% (instead of 15% prior to $45K per financial year). When an employee is set up in Xero as a WHM this tax calculation is automatic as along as the full $45K was earned with the current employer. If the employee has earned $45K prior to starting with a new employer Xero will calculate the WHM tax as 15% instead of 32.5% and there is no option to set an opening balance. I can increase the amount of tax withheld each pay period (on the Taxes tab), however since this employee earns bonuses of varying amounts, the only real option is to manually adjust the tax each pay run.
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Adelle Auld
commented
I totally agree Tammy,
I have casual employees that work for multiple companies, and as such, they notify me when they exceed $45k in earnings, even an indicator button to move them to the next tax bracket, and have all tax brackets with indicators so as they move through it charges the relevant tax bracket
0-45000 - 15%
45001 - 120000 - 30%
120001 - 180000 - 37%
180001 and over - 45%Dont imagine too many holiday workers will reach the final bracket, but you never know.
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Tammy Denaro
commented
Manually adjusting the tax rate in pay runs is cumbersome and will inevitably result in human error. Having a tax withheld option of percentage rather than dollar amount may also assist.