Payroll Uniform Deduction differs between P&L & Tax Liability Balances

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dallas_8095078
dallas_8095078 Member Posts: 2
edited January 2020 in Reckon Accounts (Desktop)
Hi everybody. 

I've been a long time reader, having found solutions to most of my problems with a search here, so a huge thank you for the great info here... however I'm unable to find help to my latest problem. 

I've set up an after tax payroll deduction (laundry costs) for my employees, and this deduction is pointing to a laundry account that my laundry service supplier invoices point to. When I zoom in on my P&L, I see the laundry supplier bills, as well as the employee deductions reducing this cost - all seems fine. 

However when i run a tax liability report, the total expenses show my laundry supplier costs in the purchases amount, but don't take into consideration the employee deductions. So the tax liability report and P&L balances don't match. 


My laundry supplier invoices point to accounts payable. 
On the payslip, the Uniform Laundry is a deduction, and the liability account it points to is my laundry account. This Laundry account is an expense type and GST

Can anyone help me bring these two reports to the same figures? 

thankyou in advance

Dallas

Comments

  • Charley
    Charley Member Posts: 546 ✭✭✭
    edited January 2020
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    Your payroll deduction does not account for GST, it is a net figure; probably you have taken the GST inclusive cost of the laundry and divided it by the number of employees or some such method.

    Your accounts payable laundry bill has GST, therefore your actual cost is less 1/11

    It looks as if you are using the payroll deduction as a reimbursement of costs incurred and hopefully they need to cancel one another out.

    The normal ATO treatment of this sort of deduction is 'who is the end user of the service'. In this case the employee who cannot claim the GST credit.

    This would then assume that you could also not claim the GST credit on your laundry bill and would need the tax code to input taxed NCI. This means not claiming the GST credit on your laundry bill.

    The two should then hopefully cancel one another out then

  • [Deleted User]
    [Deleted User] Posts: 0
    edited March 2016
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    Thanks Charles for your reply. I found my error thanks for your help


    Dallas
    btw, sorry for tardy response, damn flu