Adjusting payroll information to accurately reflect IRD paye calculator

Accounts NZ

Hello lovely Reckon community,

I am having major difficulty with my Reckon payroll not matching up what was calculated on the IRD PAYE calculator and my excel spreadsheet.

My payroll was paid correctly, but because the IRD website was down, I couldn't do my PAYE filing until the 26th.

Now I'm trying to backtrack and go back into Reckon to enter the employee hours, but because of the holiday, the hours aren't the standard .25, .5, .75 decimal amounts, and Reckon is calculating a slightly different amount than what my excel spreadsheet and the IRD PAYE calculator calculated....

Reckon wont allow me to adjust the hourly pay amounts manually in the Employee Payroll "Review or Change Payments" window, but it allows me to adjust the PAYE tax, Student Loan, and KiwiSaver-Employee Contribution.

We use Reckon primarily for bookkeeping purposes and sending invoices, not printing the actual checks as that is done via online banking. However, I still want the information to match so when I reconcile the bank statement it doesn't create problems.

Does anyone know how to manually enter the pay if the hourly calculator isn't calculating it correctly?

For example, for 40.58 hours worked at a rate of $20 per hour, My calculation is $811.60 gross pay. However, Reckon changes the 40.58 to 40:35 and calculates the pay to be $811.67 gross.

Likewise, for 20.44 hours at $20 per hour, my calculation is $408.78 gross and Reckon changes 20.44 to 20:26 and the total gross pay comes to $408.67. 

Additionally, it is not calculating PAYE tax, Student Loan, and KiwiSaver-Employee Contribution correctly (while I can adjust these, it would be nice if they calculated accurately so I didn't have to adjust it every time)

We have installed the latest Reckon software thinking it would remedy the problem, but it hasn't.

Sorry for this long post, any help is greatly appreciated.

Kellie Cockerell

Hi
Have you tried changing the time format in preferences to decimal from minutes?  Not sure if it will help but worth a try.

Linda ABC

Hi there - firstly just try changing your preferences for payroll to Decimal instead of Hrs:Mins - It could be due to conversion of the 20.44hrs to 20hrs and 26 mins that there is a slight difference due to rounding to the nearest minute?  .44 of an hour is actually 26.4 minutes - which I think might be rounded to 26 mins?  Hopefully switching back to Decimal will resolve it?  cheers Linda

Accounts NZ

Thank you, I will try that. Is there any chance one of you could guide me to where I would go to change that setting?

I also noticed that Reckon doesn't have problem calculating the gross pay accurately when the time is entered in 15 minute increments. It's just the odd decimals that throws it off, but I think you're right about the rounding to the nearest minute.

My other problem of the PAYE tax, Student Loan, ESTC and KiwiSaver-Employee Contribution not being calculated correctly remains, even when the time worked is entered in 15 minute increments.

Kellie Cockerell

Edit, Preferences, General, Company Preferences