PAY42 Prioritised Deductions & OTP Tax Calculation

Name Position Option Default Description
Deduction Priority Processing 14 D   Deductions of the same priority are applied from the lowest values up to the higher values
Blank Deductions of the same priority are applied from the highest values to the lower values
Payment Method 15 blank Where employee payment method is B - Blank and no bank details exist, pay employee by cash
C   Generate payment by cheque
N   Generate no pay
Tax Calculation for Low Income Minors 19 Y  

Enable automatic suppressing of withholding tax (PAYG) for employees who meet the following conditions:

  • Are under 18 at the time of payment

  • Have no TFN (Tax Code '4')

  • Earn less than/equal $350 per week

A new field Low-Income Minor Weekly Threshold field will be available in the Tax & Rounding screen where the weekly threshold can be maintained and be used in the Calculate Payrun Process.

N Withholding Tax (PAYG) for employees for low income minors will not be automatically suppressed
Average Weekly Pay calculation for Tax on One Time Payments 23 C   Use the current pay only when calculating the Average Weekly Pay; if not equal to 0. Do not work out the remaining OTP tax with Year to Date values on withheld OTP tax within the same financial year.
Y  

Use Year to Date values plus current pay when calculating Average Weekly Pay. Work out the outstanding OTP tax based on Year to Date values from withheld OTP tax within the same financial year.

Note: This method does not support Prepay/Rebank, and manual calculation is required to adjust/reduce the YTDs.
blank Use Year to Date values plus current pay when calculating Average Weekly Pay. Do not work out the outstanding OTP tax based on Year to Date values from withheld OTP tax within the same financial year.
Deduct YTD OTP Amount from Weekly average earnings 24 E   Deduct YTD OTP Amount from Weekly average earnings.
blank Do not deduct YTD OTP Amount from Weekly average earnings.