What are the PAYG tax codes in Reckon Accounts Payroll?

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Peter Neale
Peter Neale Member Posts: 16
edited September 2019 in Reckon Accounts (Desktop)
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.

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  • Peter Neale
    Peter Neale Member Posts: 16
    edited March 2017
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    Thanks Faye. A pity that Reckon couldn't document that.

  • Trevor Watson
    Trevor Watson Member Posts: 61
    edited June 2014
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    Yeah, it should be in the help file
  • Suzanne Lockwood
    Suzanne Lockwood Accredited Partner Posts: 71 Accredited Partner Accredited Partner
    edited September 2019
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    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

    suzanne.lockwood@lockington.com.au

  • Peter Neale
    Peter Neale Member Posts: 16
    edited October 2014
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    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
    Mirko Alumni Posts: 1,256 ✭✭
    edited November 2015
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    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
    Robin Campbell Member Posts: 1
    edited February 2015
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    hi have a under 18 with no TFN that will not earn very much what code do I put  
  • Syl
    Syl Member Posts: 13
    edited February 2015
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    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
    Cindy Wall_9013513 Member Posts: 1
    edited March 2017
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    What tax code do I use for a backpacker?
  • Debbie_8918947
    Debbie_8918947 Member Posts: 19
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    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
    Acctd4 Accredited Partner Posts: 3,482 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2023
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    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"):


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)