From July 2000, Attaché Payroll has the ability to round the Tax component of employee’s wage or salary. Some users have queried this feature and how it works. To ensure that your Tax component is rounding in accordance with ATO guidelines, choose
Setups | Payroll | Options | Payroll Options
and set the Lowest Net Cash Pay Denomination to 0.01.

The PAYG Tax Reconciliation Report displays the type of payment summary to be issued and the details that will appear on that payment summary. All amounts shown on the report have been truncated in accordance with ATO specifications. Users were reminded with the release of the 2000/2001 Australian Tax Scales that “the ATO has indicated that the amounts withheld are to be rounded to the nearest dollar.” (This was implemented in BP Service Pack 10.) A warning message on the reconciliation advises that the tax contains cents.

If the client has withheld tax in cents instead of whole dollars, two options are available.
1. Firstly a payroll adjustment can be made to zero out the cents. Print the Payment Summary report which shows the tax amount including cents. Process an adjustment pay with a negative gross equal to the tax cents and a negative tax of the same amount. This will reduce both the gross and tax amounts on the employee file. This tax adjustment will need to be taken into account when forwarding June tax payment to the ATO.
2. The second option would be to make no adjustment and disregard the cents taken out. However, you will need to factor cents withheld in your reconciliation process.

When reconciling payroll figures, use the PAYG Tax Reconciliation Report in conjunction with the Pay Summary Report. The Pay Summary Report totals all payments made for the period selected and displays the actual amounts paid to the employee during the date range specified.