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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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    Andrew Buckingham commented  · 

    Similar to Sports Admin on 16 Oct 25, we have seen a couple of these recently and the fact that an extra % can't be used in the software leaves too much room for error in processing payroll. If the ATO allow such a declaration, then it is critical that the software allows the employer to action such a request in an accurate manner.

    Andrew Buckingham supported this idea  ·