How can I override the tax rate in payroll? I am paying a staff member a bonus and it is calculating tax for this at the highest rate which is incorrect

Hi brittany-bertsch,

The PAYG calculations are based directly off the ATO's tax tables. There are however a couple of ways to adjust the PAYG if you choose, the first is with a PAYG Adjustment line:

1. In the payrun, select the green 'Actions' button below the employee's name, then 'Adjust PAYG'.
2. This creates a PAYG Adjustment. You can enter a negative amount to decrease, then select 'Save'.

Bonuses can also be paid as a Lump Sum Payment, so the tax is aggregated across a number of pay periods rather than one amount within one pay period to prevent it from calculating too high.

1. In the payrun, select the green 'Actions' button below the employee's name, then 'Add Lump Sum Payment'.
2. Select your 'Bonus' pay category and enter in units/rate as required.
3. Select calculation Method A (used when processing any additional payments regardless of the financial year the additional payment applies to) and enter in the amount of pay periods this will spread across, then Save.

-Kass