Setting Up a New Flat Rate Tax Scale

How do I set up a new flat rate tax scale in my payroll?

Step 1.

• Click on the Payroll toolbar option.
• Click on the Tax Scales tab
• Click on the Add button at the bottom of the page

Step 2.

• Name the Scale with a relevant name and in the correct format. The format is two numbers (which don't already exist in the scales) at the start followed by a space and then relevant description e.g. Flat Rate 15%.
• Tax scales between 60 and 73 are dedicated to Contractors and will need to have an ABN associated with the employee before a Payment Summary can be produced
• Tax scales above 73 are flat rate tax scales that will not produce a Payment Summary 

Step 3.

• For a flat rate, the earnings must always be less than 95000  and the Multiplier and Subtract will be the given percentage in decimals - for the 15% example, 0.15.

Step 4.

• Click on the OK  button and check that the Flat Rate Tax Scale now exists in the list of tax scales.

Please contact Practical Systems if you have any further questions.