PAYG Tax withheld from pay incorrect
The gross pay is correct, just the tax - so we owe them money (withheld too much tax).
Thanks.
Comments
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Hi Felicity,
Welcome to the Reckon Community
You'll need to modify your pay transaction by reducing the tax amount to the correct amount and adding a deduction for the amount of the difference so that the total of Net Pay remains the same. You can then clear the deduction with a cheque or deposit to the employee's bank account.
Regards,
John0 -
Hi Felicity,
Another tip - make sure that you have the correct tax code on the employee record so in future Accounts withholds the correct amount. A description of each tax code can be found from the drop down menu Employees and then choosing Tax Table Information > Tax Table Info > Key for Tables.
I hope this also helps.
Sue
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Thanks John,
Sorry, I'm still a little confused...
When you say "adding a deduction..." what sort of deduction? Do I need to set up another payroll item for this? & if so, what account do I post it to, so that it doesn't affect my accounts too much?
Sue - my issue was that this was a "one off" payment, so the tax was a little different to work out, but thanks for you help too!
Regards,
Felicity0 -
Hi again Felicity,
Yes, set up another payroll item of Deduction Type and set it to a Payroll Liabilities account. Then use the Employees > Payroll Taxes and Liabilities > Create Custom Liability Payments option to pay out the refund.
Regards,
John0 -
Excellent - thank you so much!
I'm so glad I found this site... :-)0 -
Why wouldn't Felicity be able to just change the tax amount manually in the pay cheque window?0
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Hi Flick. You shouldn't have to "work out" the tax. If you use the correct withholding scale, the Reckon software will do all the work for you. You must ensure all of the detail on the Income Tax Installment Declaration is filled out. Pay particular attention to the HELP question because and also if the employee is claiming the tax free threshold elsewhere.0 -
You can change the amount manually every week but it is not recommended. What happens if you forget? What happens if you are not around to run the pays? No, it is far preferable to get the information right on the Employee card and let the software do the work. It's what it does best. You can always check the tax using the TWC on the ATO website but you shouldn't need to.0 -
Yes but I think it was a one off payment Felicity was talking about.0
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yes, it was a one off payment.
not a usual pay also. So the tax (even though everything is set up correctly) is incorrect.
We pay employees fortnightly - this was for a casual on a "project based" contract - with a full lump sum at the end of the contract.
I have to work out correct tax as well for termination payments as the software doesn't pick it up correctly. It's not a big deal.
What John told me to do, worked & I'm grateful for the help0 -
Thanks Kevin - hate "flick!" lol
it was a one off scenario - & not as simple as ticking the right boxes...0 -
My profuse apologies Felicity. That won't happen again. Have a great day.0 -
This reply was created from a merged topic originally titled PAYG Adjustment. An employee was overtaxed for a number of weeks.I have since paid back to the employee the amount he was overtaxed. How do I enter this into his payroll records. Payroll won't let me enter a positive PAYG amount0
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