PAYG amount incorrect when hourly rate quoted to 4 decimal places

Legacy KB ID: 3848

Question

Why is Payroll Premier’s calculation of PAYG tax for a gross amount different when calculated on an hourly rate from that calculated for a Salary of the same amount?

Answer

When an hourly rate is quoted to 4 decimal places the PAYG tax calculation module will not calculate the tax amount correctly.  The difference is up to a few of dollars, depending on the gross amount of the salary, whether No Leave Loading selected and frequency of pay.  The PAYG tax calculation using other items (such as Salary) are correct.  The error is due to a rounding issue.

Our Development Team is investigating the issue.

 

Workaround

Use an hourly rate with one decimal place.

Eg:  if the rate is 32.8947 use 32.9.  The tax amount will calculate correctly. 

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