I have found out that the income tax setting for myself as an employee is not correct.
I have found this out by the amount payable under PAYG withheld for Employees.
I thought it was a bit high but until yesterday when lots of other issues were sorted out and now have a potential triple BAS payment amount for the qtr.
Salary for the year is $45k, therefore, income tax should be $6172.00 according to the ATO simple income tax calculator.
QB has somehow automatically set rates so that is has deducted $11649.00
The pay runs have been lodged thru STP obviously throughout the year. But the BAS for the last qtr has not.
How can I amend the Payruns done in the last qtr so that the amount due on the BAS is corrected and that the amount due is greatly reduced or realistically a negative amount?
More importantly, how has QB used or obtained the rates it is using and how do I change them?
Ok I've just found the Audit report
It appears that the PAYG tax rates change depending on how much I pay myself on any given month.
On one pay run, I have a PAYG rate of 20.46% on another 28.6%
Does QB assume that if I select the pay run is for approx 1 month it will assume a total payment for the year to be 12 times the amount and tax accordingly?
Generally, I select monthly when doing a pay run even though the income or funds available to pay myself may be for 2 or 3 months.
or to put it another way, If I pay myself $10000 for a pay run which I have selected for a month does it then work out the tax as if I were earning $120,000 per year when in reality I am earning only $45,000
The system is designed for employees that are being paid regularly moreso than larger lump sum payments paid intermittently, and so the PAYG amounts are calculated based on average earnings across the expected financial year. In order to assist with this, there is a function in payroll to process Lump Sum payments, and different methods for calculating the PAYG on these amounts - you can view the articles here and here for more information on how this is calculated in the system. Regardless, you may find that manually calculating the PAYG that you are expecting to pay and creating an adjustment to correct this amount might suit your needs better. In order to create a PAYG adjustment, follow the steps below:
Regarding the BAS/STP figures that have been recorded, you may wish to update an existing pay run or create a new ad-hoc pay run in order to adjust the earnings for the financial year before lodging, however I would recommend reaching out to our support team directly in order to go over this process in more detail if you have any questions about this process. You can give them a call on 1800 0496 038 and they'll be able to discuss your specific situation in more detail and ensure that the figures are updated accordingly.
In order to create a PAYG adjustment, follow the steps below:
Can this be done on a pay run that has already been lodged using STP?
You're correct that once a pay run has been lodged you will see a message stating you cannot unlock it.
You can create an ad hoc pay run for the same period to make the amendments, e.g. adjust PAYG or reverse figures that are incorrect.
Once the pay run is finalised you will then be able to create an Update Event for STP. Please see here for more information.
Please let me know if you have any other questions at all.