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Important notice: |
An employee may request an increase to the amount of tax to be withheld from their pay. There are many reasons why an employee might request this, including:
- to make sure that the amount withheld during the income year meets their end-of-year tax liability
- to cover an ATO debt
- to pay additional amounts off their Study and Training Support Loan (STSL) debt
- to cover the Medicare Levy Surcharge
Increasing the amount of tax withheld is managed in the employee profile. In the Payroll section, click Edit to the right of Payroll calculation.
Select a tax calculation method:
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- If you use tax scale, it means that the tax rates will be applied based on the the ATO tax scale applicable to the employee.
- Selecting a fixed tax percentage applies the same rate to all taxable income for the employee. If you select fixed tax percentage then you will need to nominate a rate. This is generally used where you have received a downward withholding variation from the ATO and need to apply it to the employees payments.
Specify additional tax. This is the amount that will be taken out on top of the team member's base tax each pay run.
Once you're done, click Save changes.