Concept: ATO Issued PAYG Variation (AUS)

Workday enables you to process and apply Pay As You Go (PAYG) variations (commonly known as downward variations) issued by the Australian Taxation Office (ATO). PAYG variations change the amount of PAYG withholding tax deducted from a worker's payments.

When you add a PAYG variation, Workday uses a different tax deduction code:

AUS PAYG Withholding - ATO Issued Tax Withholding Variation

. This code is displayed on the worker's payslip and reported to the ATO through Single Touch Payroll (STP).

PAYG variations reduce the PAYG withholding amount as per the instructions from the ATO for a worker's Salaries and Wages pay component. Bonus and Termination payments are not affected. To apply PAYG variations to Bonus or Termination payments, use a payroll input.

For more information about PAYG variations, see: Withholding Variations