Pay As You Go (PAYG) withholding is a system that collects tax from the payments Employer makes to employees and businesses so they can meet their tax liabilities. PAYG Withholding is the only one defaulted Tax Pay Item in Q6.
Steps on check Payroll Tax
1.Go to Settings > Pay Item List;
3.Double click PAYG Withholding, then check each tax table.
Fields explained in Tax Pay Item
1.Tax Name: Tax Name of PAYG Withholding is uneditable.
2.Tax payables Account: This is the correspondent account to pay out the Employer Contribution. In this case, NL-2450PAYG Withholdings Payable is the selected account by default. And only Liability account is required in this field.
3.Tax Table Revision Date is defaulted as 1 July each year, which is the start of financial year.
4.Tax Table: Withholding Variation is the default selection, where there are 27 options for User to choose. Once user has selected one of the options, the detailed Tax Scale will display on the right table, which will be updated by Q6 team automatically in accordance with ATO notice. Standard Tax calculation formula is a x Wages – b, which was stated on top of the Scale table.