Increasing Income Tax (PAYG/PAYE) by a Fixed Amount Each Pay Sequence

Overview

This article explains how to increase an employee’s income tax by a fixed dollar amount each pay sequence using a Tax Override set up as a Permanent Transaction. In Australia, this is referred to as PAYG (Pay As You Go); in New Zealand, this is referred to as PAYE (Pay As You Earn). The setup steps below apply to both.

This is useful when an employee chooses to have extra tax deducted from their pay on an ongoing basis (for example, an additional $40.00 every pay).

How it Works

When you use the + (plus) Override Type on a Tax Override:

• PayGlobal first calculates the employee’s PAYG/PAYE for the pay sequence as normal, based on their tax code and earnings.

• PayGlobal then adds the Override Amount to the calculated PAYG/PAYE.

So, if the normal PAYG/PAYE for the pay is $250.00 and you have a +$40.00 Override Amount, the total PAYG/PAYE deducted will be $290.00.

When to Use a Tax Override

Use a Tax Override as a Permanent Transaction when:

• The employee wants to consistently increase their PAYG/PAYE by the same fixed amount each pay sequence.

• The additional tax should apply automatically in every pay until you change or remove the override.

If the employee only wants extra tax for a single pay, you would normally use a one-off (non‑permanent) transaction instead.

Set Up a Permanent Tax Override

Follow these steps to increase PAYG/PAYE by a fixed amount every pay sequence:

1. Open the employee in PayGlobal.

2. Go to the employee’s Permanent Transactions area.

3. Add a new transaction and select Tax Override as the transaction type (or the equivalent Tax Override option used in your database).

4. In the Override Amount field, enter the extra PAYG/PAYE amount the employee wants deducted each pay sequence.
   Example: 40.00 for an extra $40.00 each pay.

5. In the Override Type field, select + (plus).
   This tells PayGlobal to add the Override Amount to the PAYG/PAYE tax it has already calculated.

6. Save the transaction.

From the next pay sequence onwards, PayGlobal will automatically apply the extra PAYG/PAYE each time you process a pay for this employee.

Example: Increase PAYG/PAYE by $40.00 Each Pay

Scenario
Your employee wants an additional $40.00 of PAYG/PAYE tax deducted every pay sequence.

Setup

• Transaction: Tax Override (set up as a Permanent Transaction for the employee)

• Override Amount: 40.00

• Override Type: + (plus)

Result in the pay

• PayGlobal calculates PAYG/PAYE as normal (for example, $250.00).

• PayGlobal then adds the $40.00 Override Amount.

• The total PAYG/PAYE deducted from the employee’s pay is $290.00.

This will repeat every pay until you change or remove the Tax Override.

More About Override Types

PayGlobal supports different Override Types that control how the Override Amount affects the calculated PAYG/PAYE.

For detailed information on each Override Type, see Help Topic 2702 – Tax Override Types in the PayGlobal online help:
https://customer.payglobal.com/customer/index.htm#2702.htm .