2021-2022 TAX TABLE UPDATE
While there are no changes announced to personal income tax rates or thresholds for the 2021-2022 tax year, there are still several tax changes that take effect from 1 July 2021.
Tax changes, effective from 1 July 2021 are:
- Component D ETP caps and the ETP Lower Cap Amount.
- Change to the Study & Training Support Loans (STSL), previously called HELP, taxscales.
IMPORTANT NOTE ON TERMINATION THRESHOLDS IN SAGE WAGEEASY
The Tax Tables provided by Sage WageEasy will include the threshold amounts for termination tax. If you have any termination payments to process for the 2020-2021 financial year it is important that you process these terminations before updating the tax tables for 2021-22, otherwise you will be applying 2021-2022 termination tax thresholds to the termination. See below for updated 2021-2022 Termination Rates.
To update the Tax Tables in Sage WageEasy follow the checklist below for each of your Sage WageEasy databases:
Check your version of Sage WageEasy
Help > About Sage WageEasy Payroll
To ensure your end of year processing for 2021 is compliant with current ATO requirements, you must be using at least Sage WageEasy Version 184.108.40.20626. Please upgrade your version of Sage WageEasy if you are not currently using this version.
To check your Latest version of Sage WageEasy.
Backup your Sage WageEasy Database
File > Back Up/Restore > Back Up > Select Backup Location > Add Files to Backup > Select Start
We recommend you take a backup of your Sage WageEasy database prior to making any changes to your Sage WageEasy.
Updating Tax Tables prior to processing first pay to be reported in the new Financial Year (2021-2022).
Installing 220.127.116.1126 (or higher) release will result in a copy of the Tax Tables_2021-22_UPDATE.pdl being saved in the default Association folder: (C:\Users\Public\Documents\Wage Easy Payroll\Association Data\Australia) for WageEasy PDL files on your PC or Application Server. You are now ready to run the tax table update per the below instructions.
Setup > Associations > Tax Tables
1. Setup Menu > Associations > Tax Tables and Edit. Click on the Internet tab and ensure that the only box that is ticked is the Tax Tables & Rebates box.
2. Click on Update Now and then Next. Select Load from Disk File and browse, by clicking on the ellipses button (box with 3 dots) and select Tax Tables_2021-22_UPDATE.pdl from its saved location (i.e. C:\Users\Public\Documents\Wage Easy Payroll\Association Data\Australia). Open > Next > Finish.
3. Once updated, CHANGE your pay period ending (PPE) date in Sage WageEasy to a bold date in July 2021, then, from Setup > Tax > Tables you will see in the description of each Tax Table the date (2021-22). Also note the effective date is now 01/07/2021.
4. Once you have confirmed that the Tax Tables are updated, you are ready to process your first pay in July 2021. If you are still processing pays in June or are yet to complete your End of Year processing, you need to make sure that you change the Pay Period Ending date back to the appropriate date in June 2021 to complete this.
5. Repeat the above steps for any additional databases (companies) you may have.