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Overtaxed working holiday makers - Australia only

If you have employees on working holidays who are being overtaxed, it's likely that you need to mark your company as registered for the working holiday makers scheme. If you haven't done this, those employees will be taxed at 32.5% instead of 15% under tax code W.

If you've had this problem you'll need to update your settings to stop it from happening again, and also make adjustments to any closed pays to correct the tax for affected employees.

The Register for working holiday makers field was added in version For more information, see Tax Year End Procedures Australia, June 2022 or the release notes.

Setting your company as registered for working holiday makers
  1. Go to Internal Company > Details tab.
  2. Set the Registered for working holiday makers option at the bottom-right of the page to Yes.
  3. Click Close.
Adjusting incorrect pays
  1. Calculate the overpaid tax. For example:
    • Gross pay was $1440 with incorrect tax of $470 deducted at 32.5%.
    • Correct tax would have been $216.
    • The employee is owed a refund of the difference of $254.
  2. Open a manual pay.
  3. Enter a Tax Override Allowance for the affected employee, with the Override Type set to Fixed.
    (In our example the Override Amount would be -254.00.)
  4. Process and close the manual pay.
  5. Send the direct credit to the bank to pay the employee their refund.
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