We have concerns about how Xero is calculating method bii for PAYG withholding on bonuses and commissions. We pay a real estate agent who has YTD earnings up to October of approx. 600k and Xero has not been withholding tax on commission payments. According to Xero the calculation is correct and per the ATO guidlines. Has anyone else come across this issue?
Hi @jameswatson,
That seems a bit strange. A commission is assessable income and needs to have tax withheld.
You can read more about calculating the PAYGW using method B(ii) on our website. If this doesn't help you to work, it out then you may need to speak to your software provider. They will be able to help you with any concerns you have and to make sure you're reporting it correctly.
Hi @jameswatson,
That seems a bit strange. A commission is assessable income and needs to have tax withheld.
You can read more about calculating the PAYGW using method B(ii) on our website. If this doesn't help you to work, it out then you may need to speak to your software provider. They will be able to help you with any concerns you have and to make sure you're reporting it correctly.
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