Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Drtebr(Newbie)Newbie
23 May 2023

I got a message from my past employer saying they have over taxed me sharing the below details:

  • An amendment to your final payment was processed on DD/MM/YYYY via STP (single touch payroll)
  • As the error has occurred in the current financial year ending 30 June 2023, your year-to-date FY23 PAYG summary will automatically be updated to the ATO. FY23 annual PAYG summaries are not yet due to the ATO until after 30 June 2023. Your annual PAYG summary should agree with the attached YTD figures as per your final pay slip.

They also sent me the before and after tax adjustment pay slips, but they haven’t refunded me the net income difference. It’s not clear what happens with the over taxed amount. How am I going to get refunded? When I complete FY23 tax return? If they are amending the PAYG summary prior to FY23 ending, it looks like nothing will be wrong when I complete my tax return so not sure how to proceed.


Thanks in advance


550 views
6 replies
550 views
6 replies

Most helpful response

Most helpful reply

Ryanthusar(Enthusiast)Enthusiast
23 May 2023

If they have been lodging the PAYG installments to the ATO like they should have been each quarter then when it comes tax time you will likely get a refund back from the ATO if they have been taking out more tax than they should have. I would keep hold of those payslips, and past ones, which should show the total tax taken out.

I would also be logging into your ATO account and under "View my income statements." find the employer and checking the total tax side and be paying close attention to the final payslip you get for the financial year, and just a fyi, June 30 is a Friday this year.

Businesses have two weeks to be paying the PAYG to the ATO, nothing you have to worry there abouts since they would be the ones screwing the ATO and not you.


As to them taking out extra PAYG, being they are a past employer and paid you your final payment already, which should/would have been paid within 48 hours of them reporting it via STP. I certainly would be calling payroll if it isnt paid in this payment cycle. Some businesses/companies only do payroll on their normal payroll cycle and not outside.

All replies

Most helpful reply

Ryanthusar(Enthusiast)Enthusiast
23 May 2023

If they have been lodging the PAYG installments to the ATO like they should have been each quarter then when it comes tax time you will likely get a refund back from the ATO if they have been taking out more tax than they should have. I would keep hold of those payslips, and past ones, which should show the total tax taken out.

I would also be logging into your ATO account and under "View my income statements." find the employer and checking the total tax side and be paying close attention to the final payslip you get for the financial year, and just a fyi, June 30 is a Friday this year.

Businesses have two weeks to be paying the PAYG to the ATO, nothing you have to worry there abouts since they would be the ones screwing the ATO and not you.


As to them taking out extra PAYG, being they are a past employer and paid you your final payment already, which should/would have been paid within 48 hours of them reporting it via STP. I certainly would be calling payroll if it isnt paid in this payment cycle. Some businesses/companies only do payroll on their normal payroll cycle and not outside.

  • Avatar of platypus
Liked by Drtebr and Bruce4Tax
Drtebr(Newbie)Newbie
24 May 2023

Many thanks @Ryanthusar !

I checked the statement on ATO website and it’s amended with the right tax amount hence with a higher net income that the one I have actually received.

I questioned the employer today and they said I should get the over taxed amount back when I lodge my tax return. Let’s see..


I have all evidence with me but really want to avoid a headache due to their mistake. Very annoying…

Liked by Ryanthusar
Ryanthusar(Enthusiast)Enthusiast
24 May 2023

It's always an annoyance when that happens.

I would definitely be watching when you do things because by amending it with the ATO like that, the difference wont be paid to the ATO from how it all sounds and they would be pocketing the difference between the two tax amounts. Also, because they amended it with the ATO it leaves a nice paper trail. All you can do is wait until after June 30 and when they do their final paperwork for the financial year.

Drtebr(Newbie)Newbie
24 May 2023

@Ryanthusar

Exactly! If they haven’t amended anything then it would be obvious something went wrong. By my amending it looks like they have done their part and have corrected everything with the employee too, which they haven’t. Will wait and see. Hope it all works well


tks again for your help!

Liked by Ryanthusar
PayrollDeanne(Taxicorn)Taxicorn
25 May 2023

Hiya @Drtebr


Given the amendment was in the current FY, this is what your employer should have done:

  1. Correct the issue of overtaxing you in their payroll system
  2. This would have resulted in a recovery of the current FY PAYGW (they get the tax "back" from the ATO) and a net difference to be paid to you (Gross less tax less deductions = net pay)
  3. The corrected data is sent via STP to the ATO, that now shows the reduced PAYGW
  4. Your income and tax will show what they ended up doing: there is no additional tax that you will get back in your IITR, as your employer already took it back

Perhaps your employer doesn't realise that CURRENT FY PAYGW refunds are to be paid to you? Prior FY PAYGW refunds aren't taken back by your employer, that's when you may get your tax back from the ATO, but not current FY PAYGW refunds.


Don't wait, that'll be too late. Liaise with your former employer now. The revised payslip should have shown an increase in your net pay: so where did they pay you that difference?


Deanne

Liked by Drtebr
Drtebr(Newbie)Newbie
25 May 2023

Hi @py_deanne


that’s my thoughts exactly!

But they keep saying that the overtaxed adjustment has been completed via STP reporting and is sitting on the ATO portal and I need to make an amendment when lodging my tax return and I’ll be ‘refunded’ based on my total income in the FY.


However I can’t trace the “old” tax amount anywhere and they haven’t explained what “amendment” I’ll need to make in my tax return. I have asked them to further explain things. This whole situation doesn’t make any sense to me.

  • Avatar of woman with short light brown hair
Liked by PayrollDeanne

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3132 likes

  2. Taxduck

    (Taxicorn)

    2189 likes

  3. PayrollDeanne

    (Taxicorn)

    882 likes

  4. YellowPotato

    (Taxicorn)

    584 likes

  5. knaresbro

    (Devotee)

    383 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    9718contributions

  2. Taxduck

    (Taxicorn)

    4947contributions

  3. PayrollDeanne

    (Taxicorn)

    2105contributions

  4. YellowPotato

    (Taxicorn)

    1462contributions

  5. YEP

    (Devotee)

    836contributions

Loading
how to claim payg over taxed amount? | ATO Community