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  1. AU Payroll - Option to enter withholding tax variation as an additional percentage

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    24 comments  ·  Payroll & expenses » Payroll  ·  Admin →
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    Accepted  ·  AdminDavid Reynolds (Admin, Xero) responded

    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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    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???

    Aideen Tierney-Pelc supported this idea  ·