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Payslip design for Australia?

#1

The Manager payslip needs a lot more info on it for Australian ATO. In particular, a running Year To Date earnings & PAYG tax totals must be shown. Is it possible to configure a Manager payslip similar to the screenshot? Any ideas or suggestions would be greatly appreciated.

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#2

YTD figures is generic requirement and it will be implemented.

As for PAYG tax totals, that is obviously supported but at the moment, PAYG has to be calculated manually and entered as deduction item. There is ongoing work which will make payroll better for Australia in preparation for single touch payroll.

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#3

YTD figures is generic requirement and it will be implemented.

As for PAYG tax totals, that is obviously supported but at the moment, PAYG has to be calculated manually and entered as deduction item. There is ongoing work which will make payroll better for Australia in preparation for single touch payroll.

Many thanks for that @lubos
I’ll wait for the update before I go playing with designing.
re PAYG… Yes I thought as much. Because there are many tax brackets and each one has a varied amount to deduct AFTER the percentage is figured. Income tax in Aus is a minefield. I already use the ATO’s calculator Weekly-tax-table-2018-19.xlsx

Cheers!
Harry

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#4

It makes me wonder if a user entered calculation field would be a better solution. A thread on the forum (or crowd managed wiki) could then be used to share the current calculation entry required for each country.

Similarly user shared custom reports (which I think was discussed elsewhere) could enhance managers support for application and country specific reporting requirements without bloating Manger, and at a much lower programmer load than Lubos contemplating doing them himself.

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#5

Would this be implemented / added for all regions? Hope so for NZ.

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#6

Yes - YTD figures will be possible to show on payslips regardless of your region.

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#7

When I posted this topic we had version 9.2.69
There’s been several Manager version updates recently. We’re now up to version 9.2.85
Still no sign of the promised YTD in payslips. @lubos, is it a big issue to fix?

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#8

@Patch PAYG is setup as a payslip form deduction. You use the ATO provided calculator (found here).

Plug in the employee’s gross. Choose which output figure according to whether you want tax threshhold or not. Finally, copy & paste the calculated tax figure into the PAYG box on the payslip form and generate your employee’s payslip.

You do similar for the employer Super Guarantee, setup as a payslip form contribution.

All that’s currently needed for compliance is the YTD information.
Here’s my payslip form if it helps…

And the result…

Please note: this creates a payslip for the employee, nothing else. It does NOT actually pay the person or interact with their bank. That’s up to you as the paymaster to pay to the various suppliers and employees. I do it like so, through new payments…

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#9

I agree this is a useful tool, and it is also how we calculate the minimum PAYG tax (one of our employees has requested more is taken out to prevent a tax bill at the end of the year due to working two jobs).

I also agree manual entry is the default way it should work as this is the simplest and applicable to all jurisdictions.

The enhancement I’m suggesting is to have the option to enter a formula so Manger can calculate the PAYG using the user entered formula. The user is still responsible for checking the PAYG is correct and the solution would also continue to be applicable to all jurisdictions.

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#10

I see what you’re suggesting. It’s problematic for Australia. There is a standard formula called NAT 1004 Schedule 1 and it will literally do your head in. Get the pdf download here
It’s a real eye-opener. :astonished:

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#11

I believe tax rules get complex in most countries

To support that Manager would need to support:

  • An optional user entered calculation field (vs the default manual entry).
  • Calculation result being written to the “PAYG income tax withheld” field.
  • Calculation formula having access to “Gross pay” for the pay period.
  • Calculation formula having access to Employee custom fields such as, Tax file number provided, Claiming tax free threshold.
  • Calculation formula optional support of more general calculation if employee mix justifies. Achieved by additional custom fields such as:- Pay frequency, Foreign resident, Entitled to Medicare levy adjustment, Number of children, Has Help debt etc (ie all logical variables except one integer).
  • I think the more general version of this has allowance for more than one tax ( eg state or federal) as well as employee or employer paid (eg PAYG income tax vs Employer superannuation guarantee).

Users from each country could then generate the required calculation definitions. I agree it would take some effort the first time. The burden reduced by users from each country sharing their formulas. Later incremental updates are likely to be easier. For jurisdictions where it is too complex, the default external calculation and manual entry can continue to be used.

The reason for the suggestion is it relieves the programmer from having to write and maintain different PAYG tax formulas for every jurisdiction / country. Instead he only needs to write and maintain one generic framework.

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#12

This is actually already in the ideas section, see Can I get my payslips to show YTD earnings, tax and Super and can be voted for there

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