Step 6: Setting Thresholds and Rounding Rules
In this step of the Company Creation Wizard you will set thresholds and rounding rules used in various calculations throughout the system. At this step, you can also update the current tax scales for this company if required. Tax scales and thresholds may vary from one financial year to the next and you should always ensure that you are using the most up-to-date scales and information.
This is an optional stage in the company set up and can also be completed at a later stage by entering Financial Years. However, if you do want to complete this threshold information at this point you must enter the following information:
This stage is mandatory and you will not be able to continue onto the next step until you have entered this information.
To set the rounding rules:
- Round tax withheld to (cents)
To round tax to the nearest dollar, enter 100 in this field. This is the recommended option, as the ATO require that tax is submitted to the nearest dollar. - Round net pay to (cents)
If you have rounded tax to the nearest dollar, you must round net pay to the nearest cent. Enter 1 in this field.
Any amounts rounded off tax are added onto net pay, and vice versa. Rounding both tax and net pay by other than the recommended settings may result in errors on your payroll.
- Once you have entered all the information required, click Next.
A message will appear telling you the most recent tax scales that have been installed on the system and asking if you would like to install any newer versions by downloading them from the HR3 website. - If you want to install a more recent set of tax scales, click Yes.
If your tax scales are not found in the system, you can skip this step for the moment. After the company has been created, you can download the latest tax scales from