Forum Discussion
Adjusting tax withheld in Xtools+
Hi nathan.greenaway,
So wonderful to receive a question about Xtools+!
So it seems like your client has lodged an income tax withholding variation with the ATO to have PAYG withheld at a set percentage - is that correct?
There isn't currently an option to withhold tax at a set percentage, but you can adjust whether they are claiming the tax free threshold or not.
Here's what it looks like when you are entering the salary:
Would it work for you to set the Claim tax free threshold option to No?
Kind regards,
Lana Graham
Associate Product Manager - Xtools
Thanks for your reply, lana.graham
Unfortunately, setting their claim tax-free threshold option to 'No' still doesn't accurately reflect their current situation. After reaching out to a few others, it seems this scenario may be difficult to model. Some have suggested creating a bank account with a 0% interest rate (to track the additional tax withheld), directing this portion of their income (the additional tax withheld) to this bank account, and then transferring these funds back as a 'tax refund' (via capital receipt) each year. However, this approach also fails to accurately reflect their after-tax employment income in their cash flow.
Ultimately, we could still illustrate the tax savings and the other benefits of our advice in their SOA.
Thanks again for reaching out.
Cheers Nate
- lana.graham2 months agoIress Contributor
Hi nathan.greenaway ,
Thanks for your reply. Was I correct that your client's PAYG tax is being withheld at a set percentage? What is the percentage used in this instance? I'm asking in case this is something we can build.
Thanks,
Lana Graham
Associate Product Manager - Xtools- nathan.greenaway2 months agoVirtual Explorer
Hi lana.graham ,
I wasn't able to confirm this, but having the option to set their tax withholding at a fixed percentage would have been useful in this situation.
Cheers Nate
- yuliatjhin3772 months agoIress Team
Hi nathan.greenaway ,
Thank you for confirming! We will include this in our feedback register and will assess if there is an option to enhance this capability.