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Attaché Payroll (Australia): How tax is calculated

Updated over 2 months ago

Attaché Payroll calculates Tax based on tax scales that are applied to each Employee Masterfile, based on standard formulas in line with the ATO. See: https://www.ato.gov.au/rates/schedule-1---statement-of-formulas-for-calculating-amounts-to-be-withheld/


Working Example of a tax calculation

The example below shows how tax calculates using Tax Scale 2 for an employee that has this scale applied to their Employee Masterfile:

Weekly Earnings Co-Efficient Co-Efficient
(X) less than A B

$2307.0000 multiplied by 0.3450 minus 182.7504

In an employee's timesheet (Payroll, Transactions, Timesheets, Create or modify):

In the example above, the employee earned $1324.00 gross a week.

From Setups, Payroll, Tax Scales, Enquire, you can check Tax scale 2

Using line 7 on the tax scale for Tax-free Threshold Claimed. Weekly Earnings.

To calculate the tax: ($1324.80 x 0.3450 ) - 182.7504 = $274.3056 which will round to $274.00 TAX.

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