How to Set or Update Tax and Super Settings for Pay Items

Overview

Updating tax and superannuation settings for pay items in Myaccountant ensures accurate PAYG withholding and super guarantee reporting per ATO and Fair Work requirements. It is your responsibility to ensure employee payments are correctly treated for PAYG withholding tax and super. Correctly mapping pay items to ATO's payment type categories for Single Touch Payroll (STP) compliance and testing the changes helps avoid compliance issues and ensures payroll accuracy. Also, note that the tax and super settings are applied at the Payment Type level and not to the pay items. The tax and super settings of the payment type will apply to all pay items that are assigned with the particular payment type.

Steps to Set or Update Tax and Super Settings for Pay Items:

Sign in to Myaccountant. In the main menu click on Payroll.
Access Payment Types List. Click on the Payments Type tab to access the Payment types list.
Select the Payment type from the list. Click on the payment type to Edit.
Locate Tax and Super Settings.
- Tax Settings: Check or uncheck the box for Apply Tax.
- Superannuation Settings: Check or uncheck the box for Apply Super.
Click Save or Update Pay Item.
Testing the Changes: Run a Payroll with a test employee. Verify tax withholding and super calculations are correct.

Useful Tips

Review ATO guidelines on Ordinary Time Earnings (OTE).
Overtime generally excluded except under specified awards.
Changes affect future pay runs only; past pays remain unaffected.
For Lump Sum and Termination items, match ATO categories exactly to prevent STP submission errors.