Calculating tax for daily and casual workers

For employees that are assigned to the Employment type as Casual or Part time, when a date has been entered into the Date from and Date to fields, the tax is calculated on a daily basis, rather than being taxed based on the employee’s pay frequency.

Tax is calculated based on the ATO's Tax table for daily and casual workers (NAT-1024). For further information on when this tax table should be used, please refer to the ATO Tax table for daily and casual workers website.

PAYG withholding for casual and daily workers

For Reckon Payroll to automatically calculate tax based on the ATO's Tax table for daily and casual workers (NAT-1024), you will need to ensure your employee's are on the Employment type Casual or Part time and a start and finish date is entered against an Earnings pay item.

To enter a period for casual and daily workers:

  1. Add or select a pay run
  2. Select a Casual or Part time employee
  3. Select Edit
  4. Select an existing Earnings item or create a new one
  5. In the Period (optional) section enter a Date from and a Date to
  6. Select Save and close
  7. The PAYG tax withheld will be calculated using the ATO's Tax table for daily and casual workers (NAT-1024). The from and to dates will be displayed under the pay item used.
The calculation of tax using Tax table for daily and casual workers (NAT-1024) is only applicable for Earnings pay items and excludes leave.
Both the from and to date are required for the daily and casual workers tax calculation


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/payrollapp

Or Log a Support Ticket: https://www.reckon.com/au/support/

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