Net Pay Rounding

Marlin HR enables net pay to be rounded down to a whole dollar for employees paid in cash.

This avoids handling small denomination coins.

When net pay Rounding is active, the cents are removed from the Net Pay amount and added to the Tax amount on each pay run, so the total cost to the store stays the same.

The extra tax withheld is small, and the employee receives it back from the ATO in their tax return.

Example — \$552.37 net pay and \$157.28 tax becomes: * \$552.00 net pay and $157.65 tax

Note — Rounding applies only to employees with their Payment Method set to Cash (Employee Maintenance > [Employee] > Pay Details)—all other employees are paid their exact net pay amount, including cents.

Warning — Do not use this option to deduct extra tax from an employee's net pay. See how to set up a Deduction for Extra Tax instead.

Enabling Rounding

Net Pay Rounding is a global setting, so it applies to all employees paid in cash.

If you do not pay any employees in cash: leave it turned off.

To enable Net Pay Rounding:

• Select System > Options
• Select the Payrun Options tab
• Tick the Net Pay Rounding checkbox
• Enter the Pay Rounding Amount (eg. $1.00)
• Click **Save**

Overriding Rounding

Rounding can be overridden for an individual employee on a single pay run, when:

• An exact Tax or net pay amount is required (eg. reversing an exact amount on an adjustment pay run)
• The employee is unlikely to reach the Tax Free Threshold for the tax year, so the extra tax is not wanted

To override rounding:

• Open the employee's pay details on the pay run
• Tick the checkbox at the bottom of the screen.