Tax deduction in PAYG is too high?

Katrina Turner Carrick
Katrina Turner Carrick Member Posts: 2 Novice Member Novice Member
edited December 2017 in Accounts Hosted
I have an employee that has come and told me he is paying too much PAYG tax. I have called the tax department and spoken to them today and they have told me that he is paying way too much tax. Called Reckon and they went through everything and said no thats right they put in all his figures and had the same amount as me. Called the tax department back and they again checked and said no you are paying to much. Have checked the Super details aren't taxed (no tick) as that can cause this and it isn't. Can anyone help me pretty please.
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Comments

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
    edited December 2017
    Hi Katrina

    In the ATO Tax Withheld calculator, you say the payee has claimed the tax free threshold, but I can see from Reckon, that you have used 1-NoTFT (no Tax Free Threshold). 

    You need to change this to 2-TFT, and its should correctly calculate the tax.



    Graham Boast 0409317366
    Reckon Accredited Consultant
    graham@reckonhelp.com.au
    http://reckonhelp.com.au/remotesupport.htm


    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • Katrina Turner Carrick
    Katrina Turner Carrick Member Posts: 2 Novice Member Novice Member
    edited February 2015
    Thank you Graham. Ahhhh! Can't believe it was that simple.
  • Mel scott
    Mel scott Member Posts: 2 Novice Member Novice Member
    edited March 2017
    Can I ask then, our employee has not been earning over the amount that is needed to pay tax in the past, but now she is. I think we ticked the 2-TFT but her last pay that was $947 there was no tax deduction on the payroll (according to the ATO tax calculator it should have deducted $58. Can someone help me work this out?
  • Graham Boast_8683921
    Graham Boast_8683921 Member Posts: 9 Novice Member Novice Member
    edited June 2017

    Hi Mel


    Check the setup of the payroll item/s you are using; List > Payroll Item > double click on relevant item > on the Taxes screen (about 5th screen in), check that PAYG is ticked.


    Graham 0409317366
    graham@reckonhelp.com.au

  • Mel scott
    Mel scott Member Posts: 2 Novice Member Novice Member
    edited March 2017
    Thanks Graham,
    Is this for Reckon One? and where would be the List be?

  • Graham Boast_8683921
    Graham Boast_8683921 Member Posts: 9 Novice Member Novice Member
    edited March 2017

    Hi Mel. Reckon One is different.

    Check the setup of the Payroll Items you are using in Setting (Cog Top Right of screen) > Payroll Settings > Pay Items.  Tax Applicable should be set to Gross payments.

    Also check Payroll > Employees > select Employee > Employment Tab.  Make sure the pay frequency is correct - having fortnightly selected when it is a weekly payrun will affect the tax calculation.

    Graham

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