Override tax in payslip

Overriding tax in a payslip

If you have a scenario where an employee was not taxed correctly and you need to adjust how much they should have been taxed, you can do this by using tax override when in pay.

Override tax in a payslip
You can pay the employee the difference by overriding the tax on the processed payslip.
  1. Find the payslip the incorrect tax amount was paid to under Payroll > Pay > Payslips tab and select Action > Edit. This can also be actioned to Draft Payslips as well.

  2. Scroll down to the end of the payslip and you will see a toggle that says Override Tax on the right of the totals section and turn the toggle on.
  3. Enter the correct tax amount for example the below Tax is $194 but should be $210.
    • We'll first adjust the tax amount.
    • Do not select Calculate Totals as this will revert the tax.
    • Instead select Preview Payslip to make sure amounts are correct.
  4. Then select Update Payslip and add a comment to capture why you edited the payslip.

  5. Once the payslip is updated, an STP event will be generated for you to submit and an ABA for the difference will be created for you to upload and pay the employee. 
Double checking the changes made? Run a Payroll Activity Report
To check your changes you can run a Advanced Payroll Activity Report:
  1. In Reports > Financial > select the Advanced Payroll Activity report and select your period ending/date.
  2. Group by Employee ID and in the filters filter by the employee's name and run the report
  3. You'll now see the updated override tax information in the PAYG tax column

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