On 6 October 2020, the Australian Government introduced personal income tax cuts as part of the 2020–21 Budget.
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 onwards.
You don't need to make any other adjustments or refunds for their employees for pay's 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.
Backup your Wagemaster File to File Manager: Click Here
We recommend you take a backup of your Wagemaster File prior to making any changes to your Sage WageEasy.
Updating Tax Tables (asap), or by no later than 16 November 2020.
Download the Tax Tables_2020-21_2_UPDATE from the bottom of this article, save it to an easily accessible location. Do not open it, upload it as per the steps below:
- In the Wagemaster, 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 a disk file. Click on the ellipsis (the 3 little dots) to locate the saved tax tables file.
- At the Open window, click onDesktop (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 until 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.
- Once you have confirmed that the Tax Tables are updated, you are ready to process your pay.
- Repeat the above steps for any additional databases (companies) you may have.