If your accountant has told you to enter pay transactions for yourself to cover drawings or other reasons, you may find large gross wages/salary causes a large amount of tax to be generated. You can override the PAYG tax raised – just type over the amount.
How much should you type in? It depends on what period the gross is covering – eg if it’s for a full year, then divide that by 52 weeks to get a weekly amount and use the weekly tax tables to find out what the tax is, multiply that by 52 to get back to an amount that is in proportion to the full year amount, and enter that in the pay window at the PAYG tax line. (Alternatively, use adjust to fortnightly or monthly as appropriate).
For a quick way to calculate the PAYG on wages, go to the ATO calculator – http://www.ato.gov.au/scripts/taxcalc/calc_standard_hire.aspx
Need FREE help? Got Questions? Call Paul in Aust 0407 361 596