Where/how do I set the tax rate for an employee who has had their tax rate varied down by an ATO Income Tax Withholding Variation (ITWV) ?

Hi michael-green,

You have an option on your employee's Tax File Declaration to tick Has approved withholding variation.

The Has approved withholding variation field should only be selected if the employee has written approval from the ATO that their tax rate should be set as per their instructions. Ticking this checkbox will then display a new % field where the tax rate % percentage should be added (as a number only). If the ATO has advised that no PAYG should be deducted for the employee, then enter '0' as the value.

1. Go to Employees tab.
2. Select an employee.
3. Select Tax File Declaration.
4. Tick Has approved withholding variation and enter the tax rate percentage.
5. Select Save.

Feel free to drop a comment below if you have any other questions. Have a great day!