As you would have been notified by the ATO, the tax tables have changed for employees who earn over $80,000.
This is due to the Australian Government increasing the 32.5% tax threshold from $37,001 – $80,000 to $37,001 – $87,000.
What do you need to do in your software?
Xero – will update automatically
In Xero, any changes to PAYG tax and superannuation guarantee rates are taken care of automatically, without the need to install any updates.
If you are a Xero user, you don’t need to do anything.
If you haven’t used Xero before and like the sound of this, give us a call and we can discuss whether Xero would be the right software for you.
QuickBooks online – will update automatically
As with Xero, you have nothing to worry about as the tables will be automatically updated for you.
MYOB Essentials – will update automatically
MYOB Essentials will also be updated automatically, so any pays recorded from 1st October will use the new tax tables.
However, if you are using other versions of MYOB you will need to update the software AFTER your last September and BEFORE your 1st October payrun.
MYOB instructions for relevant software versions are available here: http://community.myob.com/t5/Installing-and-upgrading/October-1st-Compliance-release/td-p/433786
Most likely you will receive a service pack update, however at the time of writing Reckon didn’t have an answer for its users. They promise to notify all users by the end of this week (you can follow the thread here: https://community.reckon.com/reckon/topics/reckon-new-tax-tables-1-october-2016-au )
You can find more information and downloadable tax tables from the ATO here: https://www.ato.gov.au/Rates/Tax-tables/?2016emailnotification
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