"Tax Holiday Pay" setting defaulting to "Tax Separately" (New Zealand)
When an employee is being paid Holiday Pay as part of the pay for a period, the Holiday Pay would be included with the other earnings in the pay for the calculation of the PAYE for that pay. The Holiday Pay can also be taxed separately to the rest of the earnings in the pay if required.
These situations are controlled by the "Tax Holiday Pay" settings in the Holiday Pay screen of the Current or One Off Pay being processed. By default this should be set to "With Other Pay".
If the Holiday Pay is being paid in a pay and the PAYE is lower than what would normally be taxed for that Gross figure, the "Tax Holiday Pay" setting is most likely showing as "Separately". Correct the setting in this pay to be "With Other Pay" and the PAYE will increase appropriately.
When it is found that the "Tax Holiday Pay" setting for an employee is defaulting to "Separately", the employee's Standard Pay in the Pay table has had the setting changed. The employee's Standard Pay in the Pay table needs to be corrected following the instructions below.
The field "Hol_taxtog" in the Pay table for the Standard Pay of an employee (paynum=0) has changed from "T" to "F", causing the Holiday Pay screen to show the setting as "Separately".
- Press Alt+Q
- Enter the password - MYOB
Type "use pay" (without the quotes)
If more than one employee is affected then the following command can be done: replace all hol_taxtog with .T. for paynum=0
This command will ensure that all employees have the correct setting and replaces steps 4 to 6 below.
- Type "brow for staff_code=XXX and paynum=0" (without quotes and replace the XX with the employees code)
- Search through the line for a field called "Hol_taxtog" - this will be showing as "F"
- Change the "F" to "T" then press Enter to move to the next field (without quotes)
Type "exit" to return to the main Payroll screen (without quotes)
To check that the Holiday Pay screen is now showing the setting correctly, you can create A One Off Pay or wait until the next Current Pay is created.
Need more help? You can open the online help by pressing F1 on your keyboard while in your software.
You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.