Adjust Incorrect Payroll Tax Settings in a Pay Run

Payroll Tax Exemption Settings

When Payroll Tax is being calculated, Astute will check for exemptions that have been configured in the following places:

• Entity
• Customer
• Supplier
• Job
• Pay Item
• Superannuation item
• Deduction item
• Contribution item

Pay data which is marked as Payroll Tax Exempt at the time that a pay run is marked as paid will not be factored into any Payroll Tax calculations. 

Exemption settings are captured at the time that a pay run is marked as Paid, and changes made to these settings will only apply to future pay runs. They will not be updated retroactively for pay runs that are already marked as Paid.

Process an Adjustment Pay

If the incorrect Payroll Tax Exempt settings are used for an employee or a pay item, you will need to process an adjustment pay to correct this. The adjustment is processed in two lump sum pays:

• The first lump sum pay reverses the original pay (ie the pay with the incorrect settings). When you process this pay, you’ll need to ensure that each pay item is configured in the exact way it was when the original pay was processed, so that what you enter reverses the misattributed data.
• The second lump sum pay reprocesses the pay with the correct exemption settings. Once you’ve done the reversal in the first pay, you’ll need to update your pay item or employee exemption settings as needed prior to processing this second pay. This will record and attribute the data correctly.