What are the PAYG tax codes in Reckon Accounts Payroll?

Peter Neale

There is nothing in the help file to tell us the meaning of the rather cryptic tax codes for PAYG in payroll.  I know what codes 1-3 mean, but below that they are a mystery. I have foreign nationals who should not be paying the Medicare levy, but I can't find an appropriate code.

Peter Neale

Thanks Faye. A pity that Reckon couldn't document that.

Trevor Watson

Yeah, it should be in the help file

Suzanne Lockwood

Hi Peter, Faye & Trevor,

This information can be located via:

Employees menu > Tax Table Information... > Tax Table Info button > select Key for Tables hyperlink.

Suzanne Lockwood

Reckon Accredited Consultant

[email protected]

Peter Neale

Hi All,

Thanks, Suzanne, for the link to the Key Table.  It just shows that you learn something new every day.  I have been a daily Reckon/QuickBooks user for 5 years + and have completed the QuickBooks Advanced Certificate (which disappointingly did not include payroll).  I (obviously) didn't know the Table was there.

However, what is in the Key Table appears to be different to what Faye wrote above, particularly in relation to codes 5 and 6, which are the ones of interest to me at the moment with foreign workers who should not be paying for Medicare because they are not covered by it.  The description in the table for code 5, for example, says: "Used for employees who claim the full Medicare levy".

Does this mean employees who pay the full Medicare levy, or employees who do not pay the full Medicare levy?  It could be read either way.

Mirko

Hey Casey, just select the HELP tax code and the program will work out the amounts itself through the Tax Tables (if they have been updated to the relevant ones). - Mirko

Robin Campbell

hi have a under 18 with no TFN that will not earn very much what code do I put  

Syl

Hi, I have an employee who would like to claim q9- seniors and pensioners tax offset. How do i enter that to QB? Thank you.

Cindy Wall_9013513

What tax code do I use for a backpacker?

Debbie_8918947

I have a young casual who has another job and is claiming the tax free threshold from them. He has a HELP debt, so I've selected that, but what tax code should I use. I thought that 2 would only be used if you are claiming the tax free threshold?

He is however, only doing 16hrs per week, so not sure if this makes a difference.

Acctd4

Hi Debbie

That's correct - 2-TFT is only for employees claiming the tax-free threshold.

For this casual employee who's not claiming it, you would use 1-No TFT (This stands for "No Tax-Free Threshold"):