PAYG Tax not charged when Leave Loading exceeds tax-free threshold

Legacy KB ID: 4356

Question

An employee was paid Leave Loading with an amount that took his total Leave Loading beyond the tax free threshold ($320.00).  Why didn’t QuickBooks calculate PAYG tax for the amount above $320.00?

 

Answer

This issue may be encountered when

·         using an Holiday Hourly Rate;

·         the number of hours for Holiday Hourly are included on the Employee Record for regular pay runs; and

·         no changes are made on the Review or Change Payments screen.

 

PAYG Tax on Leave Loading will recalculate only when the Review or Change Payments Screen is refreshed by entering some information on it – like hours for an hourly pay rate, an additional pay item, a deduction or ticking an option box on the screen.  Where the additional amount takes the total Leave Loading for the year above the threshold ($320.00), tax will not be calculated on the amount above it. 

PAYG Tax will not be calculated on additional Leave Loading until the Review or Change Payments screen is refreshed on this or subsequent payrun.

 

Workaround

When hours for an Holiday Hourly pay rate are included in the Employees record, and no changes need to be made on the this pay, refresh the Review or Change Payments screen by ticking then unticking Do not accrue time before clicking on Save & Close or Next. 

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