Tax deduction in PAYG is too high?

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.

Comments

Graham Boast

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

Katrina Turner Carrick

Thank you Graham. Ahhhh! Can't believe it was that simple.

Mel scott

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

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

Thanks Graham,
Is this for Reckon One? and where would be the List be?

Graham Boast_8683921

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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