Step 1: Setup
Step 2: Update BAS Total
Updating BAS total from • Payroll: Uses your Payroll entries to calculate the W1 and W2 figures. These figures should be the same as what is shown in your payroll reports when run for the same period. -

This is the recommended option
Updating BAS total from • Cashbook: Uses Cashbook. The W1 (gross wages) will be calculated from all transactions using Wages Account/s which have been ticked For gross wages in BAS in Chart of Accounts setup (see Below), and W2 will be cashbook transactions using the PAYGW account.
To Setup Wage Accounts When the W1 (gross wages) Figure is Calculated from Cashbook