While users have the settings for a TaxPlan set to Auto Calculate PAYG, individuals will be included by default as there are multiple variables we need to accommodate. In addition to wages/salaries, individuals can have additional income from, for example, interest, investments, or even business income.
When you add the required "Estimated PAYG Tax on Wages" for the individual, it will reduce the balance used for the Estimated PAYGI. PAYGI is then auto-calculated for any remaining balance.
As per ATO: Automatic Entry to PAYG Instalments
If you lodge a tax return with instalment income above the entry threshold, you may be required to pay PAYG instalments. If you are an individual (including a sole trader) or trust, you will automatically enter the PAYG instalments system if you have all of the following:
Instalment income from your latest tax return of $4,000 or more
Tax payable on your latest notice of assessment of $1,000 or more
Estimated (notional) tax of $500 or more
Learn more on the ATO Website.
However, if your client's scenario doesn't suit, you can change the PAYG setting to No or Manual, which will allow you to customise the PAYGI as required and exclude the individuals. This is the recommended way to override the default setting of "Include PAYG Instalments" as Auto Calculated.