How do you set up employee with no tax free threshold

Hi gloriam,

Thank you for reaching out to us.
To set up tax free threshold, please follow these steps:

1. Go to Employees tab.
2. Click on Tax File Declaration.
3. Under Tax Calculation Options, you may check the tick box for Australian resident for tax purposes and Claim tax free threshold.
4. Click on Save.

You may refer on this ATO site for additional information on tax free threshold https://www.ato.gov.au/Individuals/coming-to-australia-or-going-overseas/Your-tax-residency/Australi...

Don’t hesitate to post again with any questions. Thanks.

thanks Nona

This employee should have NO Tax free threshold claimed, so this box was not ticked. But when I create the payrun the tax calculation is too low, as if the tax free threshold was being claimed. Any other settings to check?

Hi gloriam,

To set up No tax free threshold for an employee, here are the steps.

1.      Go to the employee record for the employee that you want to create the recurring deduction for and under the 'Pay run settings' section click 'Pay run inclusions'
2.      Fill out the necessary information.
3.      On the field box under Preserve Earnings, you will be ask to set the threshold.
4.      Click Save once completed.

Hope this answers your question. Feel free to reach out again if you have any other questions.

There is no longer a "Preserve Earnings" heading under the "Pay Run Inclusions" heading. How would you exclude the tax free threshold now?