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MYOB – How do I match the PAYG my accountant says to use?
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Published on Monday, 05 January 2015 19:10
If your accountant has told you to enter pay cheque transactions for yourself to cover drawings or other reasons, you may find that a large gross wages/salary causes a large amount of PAYG tax to be generated. How do you match the PAYG your accountant says to use?
Answer - You can override the PAYG tax raised – just type over the amount in the paycheque window – ensure it is negative!!!
How much should you type in? Either what the accountant gives, or simply calculate - It depends on what period the gross is covering – eg if it’s for a full year, then divide that by 52 weeks to get a weekly amount and use the weekly tax tables to find out what the tax is, multiply that by 52 to get back to an amount that is in proportion to the full year amount, and enter that in the pay window at the PAYG tax line. (Alternatively, adjust to fortnightly or monthly as appropriate).
For a quick way to calculate the PAYG on wages, try this –
Australian Payroll Tax and Super Calculator
or get the ATO tables –
ATO Tax Tables – PDF’s
Need help? Not sure? Call for FREE 30min advice / strategy session today! Aus +61 407 361 596
and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!
For more business tips, see www.accountkeepingplus.com.au
