Did you know we have introduced automated calculation and population of Year-to-Date (YTD) Pay As You Go (PAYG) withholding tax for salary and wages in Xtools+?
This update enables you to generate accurate year to date projections instantly, eliminating the need for manual calculations or administrative workarounds.
Many of you told us that you prefer not to apply PAYG withholding to their projections, choosing instead to see the tax come out as an expense at the End of Financial Year (EFY). However, when cashflow projections commenced partway through a financial year without PAYG withholding enabled, the system applied a full year's tax liability as an expense. This mismatched timing created an artificial cashflow deficit, forcing paraplanners to manually calculate YTD tax withheld on salary income and manually enter the override.
Now
- The system automatically determines and enters the YTD PAYG withholding tax for salary and wages.
- Paraplanners no longer need to perform offline calculations or manual data entry to prevent artificial deficits.
- You retain the ability to manually override the automatically calculated YTD PAYG withholding if you prefer to use an alternative custom figure.
Below we see the new feature working in a scenario that commenced on 1 June 26. The previously withheld PAYG tax is automatically calculated and applied under Tax Withheld, Year to Date.
