Tax Adjustment

This article is for users who get a tax difference of $2 in comparison to ATO tax tables for some payment amounts in Wagemaster. This article also covers setup related to tax adjustments. 

The differences result from the rounding of components the ATO allows a $1 per week rounding difference. For more information, please check the ATO website.​

• You can leave it as per the software calculation as it can be adjusted during tax returns, or alternatively,
• You can add a tax adjustment to the employee record and it will be applied to each pay run for that employee. 

To Setup Tax Adjustment

1. Navigate to the employee file by clicking on Employee.
   
2. Select the correct employee, click on Payments > Tax.
   
3. Click on the Adjustment box to add the amount to be adjusted depending on less/more tax to be withheld.
   Please Note
   You can only add the whole dollar amount.
   
4. You will see that tax will be adjusted each time when you process the payslip.
   
5. If it is a one-off tax adjustment for any reason then you can make an adjustment while processing the payslip after entering hours as usual, and when you are on the Adjustment page, click on Tax > Edit and overwrite the amount and click Ok > Next.
   
6. Save the payslip if you are happy with the tax withheld amount.