This article is for Wagemaster payroll users to update their existing tax tables.
Updated tax tables for the 2021/2022 Financial Year will be provided in the June email communication via Marketing closer to the end of the financial year. The tables will incorporate any changes released by the ATO.
When To Perform The Update
You should only perform the PAYG tax tables update:
- After you have processed the final wages for the current financial year; and
- Before you process your first wages for the next financial year; or
- When you receive the tax table update information directly from us.
If you are unsure of whether or not it is time for you to update, please contact Customer Support.
On 6 October 2020, the Australian Government introduced personal income tax cuts as part of the 2020–21 Budget. You can read more about it on the ATO website: ATO - Important Tax Table Information.
Wagemaster users need to update Tax Tables_2020-21_2_UPDATE (attached at the bottom of the help article) in order for the tax cuts to be reflected in employee’s take-home pay. Employers must make sure they are withholding the correct amount from salary or wages paid to employees for any pay runs processed in their system from no later than 16 November 2020 onwards.
You don't need to make any other adjustments or refunds for their employees for pays processed before implementing the new tax tables. Any over-withholding that occurred prior to the updates to payroll software will be applied as credits when the employees lodge their 2020–21 income tax returns.
Download And Install The 2020 - 2021 PAYG Tax Tables
Prior to installing the tax tables, you will need to ensure your Wagemaster is up-to-date by downloading and installing the latest version (June 2020) sent to you via email. Full instructions on how to update are available here.
Download the tax tables. Do not open it, upload it as per the steps below.
- You will see two tax table attachments below as there were two updates last year. Select the relevant tax table and download it. Tax Tables_2020-21 is for the period 01/07/2020-12/10/2020 and Tax Tables_2020-21_2 is from 13/10/2020-Current.
- To download, right-click and select Save link as...
- The Save As window appears. Save the file onto your desktop (if you choose to save it elsewhere, make sure you remember the exact location).
- Follow the instructions below to update the tax tables in your Wagemaster file.
Update The PAYG Tax Tables
- In the Wagemaster application, click on Setup and select Associations.
- The Associations window will be displayed. Double-click on Tax Tables.
- The Edit Association Details – Tax Tables screen appears.
- Select the Internet tab, then tick the Tax Tables & Rebates box. Ensure that the other options are not selected. If they are, click into those boxes to deselect. Click on the Update Now button.
- The Update Association Data Wizard will be displayed. Click on Next.
- At the Update Data Source window, select Load from disk file. Click on the ellipsis (the 3 little dots) to locate the saved tax tables file.
- At the Open window, click on Desktop. (If you have saved the file elsewhere, click on the dropdown arrow in the Look in field to find the location).
- Using the scroll bar on the side, scroll down till you see the saved tax file. Select the file named Tax Tables 2020-21 Updated.pdl.
- Click Open.
- The Update Data Source window appears again with the file path (the location where the file is saved) added to the Load from disk file field. Click Next.
- The Finish Update Data Wizard window appears. Click Finish.
- You will end the update process with the Finish Update Data Wizard window. Click Close to end.
- Change your PPE date to the next PPE in the 2020/2021 year by clicking on PPE: from the menu and selecting the first PPE date on the calendar (highlighted yellow in the example below) and verify if the tax tables have updated as per the instructions below.
Verify Update Of Tax Tables
To check if your tax tables have been updated successfully:
- Click on Setup > Tax > Tables.
- At the Tax Tables window, check for 2020-21 (highlighted in the picture below) at the end of each tax table entry.
- Click on the most common Tax Table used > Edit and see if the rates have changed. (The rates in the picture below apply to the period 13/10/2020-Current for 02 with general exemption).
- Once you have confirmed that the tax tables are updated, you are ready to process your pay.
- Repeat the above steps for any additional files you may have.
Do not open the downloaded tax tables & upload them as per the steps above.