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REN9
November 9, 2021
Question

PAYG Withholding for 2nd Job Incorrect

  • November 9, 2021
  • 1 reply
  • 0 views

Hi,

 

I own 2 companies and am employed by both, one as a full time employee and one as a casual. I have ticked claim tax free threshold from company #1 which is my full time employment but not on company #2 casual employment. My accountant has advised me that not enough tax is being withheld from company #2. She says my tax withheld needs to be based off my combined gross wages for both jobs.

So as an example based on current settings:

My gross wage from company #1 is $1000 and I am getting taxed $162

My gross wage from company #2 is $400 and I am getting taxed $90

Total gross wages from both jobs = $1400 with $252 PAYG

 

If you look at the tax table for total combined wages the tax is $301 so a difference of $49

 

Is there a way of telling quickbooks that I (the employee) have two jobs and it needs to change how it is deducting the PAYG component? I've tried to chat and talk with Quickbooks with no help.

1 reply

I
IntuitSheila
November 9, 2021

Hi there REN9,

 

The PAYG calculation is automatic and is based on the taxable earnings of the employee. Ticking the tax free-threshold for this employee in the employee setup can affect the PAYG calculation on the pay run. 

 

We'd recommend checking your employee set up and the pay category set up and used for each job. Here's how:

 

  1. Click on the Employees tab.
  2. Click the employee name.
  3. Click on Tax File Declaration.
  4. Check if TFN is entered, and double check the Tax calculation options.

Then, to check the pay categories used:

  1. Click on the Employees tab.
  2. Click on Payroll Settings.
  3. Click on the Pay Categories.
  4. Locate and click each pay category used on the job.
  5. Double check the category if it is not set to PAYG exempt.

Also, additional factors on the PAYG Calculation is based on the Tax file declaration, Pay Schedule and taxable earnings.

You may want to check the PAYG Calculator available in the ATO website: https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC/questions#TWC/questions

 

If you have other questions in mind, feel free to go back to this thread.

 

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