If you receive a letter from the ATO (Australian Taxation Office) to apply a specific tax rate to an Employee, follow the steps below:
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee.
Click Tax Details.
Select Specify Rate as the Tax Type.
Enter the rate advised in Tax Rate.
Select the Variation Date from the letter.
OK to save.
The variation needs to be reviewed each financial year or modified at the end of the period specified by the ATO. If the Tax Variation is for a particular Allowance such as a Car Allowance, a manual Tax Value will need to be worked out instead. For more details, see Apply a specified Tax Rate to an Allowance.