Payroll Premier updates?

Kali

Hi Rav,

You seem to be hit & miss with answering people's questions/queries on here?

I saw a comment earlier (by chance) speaking of a 'patch' that fixes some STP errors - why is this not being communicated & shared under 'updates & service packs' to all members? Are there other "patches" that have also not been communicated?

I would like to think updates such as this would be important enough for members to be notified via email?

There seems to be very little communication about software updates. For payroll professionals, having a software we can rely on is extremely important.

I've been waiting on glitches to be fixed inside Payroll Premier for years; which, could be potentially putting other members at risk too. From a compliance point of view I feel these should be fixed as priority or at least members made aware of such glitches?

For example, I have been waiting over 6 months for an error to be fixed with SGC & leave loading. Currently, SGC is not calculated on leave loading which is incorrect as per the ATO guidelines. How is this not a priority to be corrected by Reckon or at the very least being communicated to members as it's potentially putting members at risk for SGC penalties.

There are so many glitches like this I have come across over the years, and to be honest, it's really quite frustrating and unprofessional.

We're weeks away from EOFY and many of us are still waiting on direction of an EOY process for STP.

It's really quite poor and I'm sorry to take my frustration out on you; however, I have been using this software for close to 15 years, and the communication to members really needs to improve and regular software updates need to occur.

I look forward to your response.

Cheers,

Kali

Helen Bowers

Hi Kali. The employer is required to pay super on OTE once the earnings are actually paid to the employee. Under the Super Guarantee legislation (SGR 2009/2) an annual leave loading is not considered OTE if it relates to a notional loss of opportunity to work overtime.
Straight from the ATO!

Kali

Hi Kevin & Helen,

The checklist on the ATO website would appear to disagree with you both?

Kali

Another screenshot, direct from the ATO website:

ATO link: https://www.ato.gov.au/business/super-for-employers/how-much-to-pay/?anchor=OrdinarytimeearningsOTE#...

Suellen_9723293

Kali, I agree with you.  We noticed this issue also, had our accountant consultants verify that (for our firm's policy at least) that SGC was to be included on calculations on our Annual Leave Loading - I reported the problem to Reckon some 6 months ago also and yet no resolution has been advised.  We manually calculate this each pay which is a cumbersome and onerous task when we pay membership subscription to have a fully integrated payroll system which is increasingly proven to be failing.

Suellen_9723293

There are some businesses where there is no overtime opportunities, employees of those businesses under the modern award are eligible for Annual Leave Loading to be classifed as OTE for SGC purposes - as the loading is not paid to them as compensation for lost opportunity for overtime but a directive within the award.  I would think there should be a tick option within payroll setup for the businesses to be compliant within their own structure.  The ATO's ruling is ambiguous - even representatives at the ATO when I phoned to verify this ruling were unable to provide a definitive response - our Accountant Consultant advised that our business to be compliant under SGC legislation IS TO calculate SGC on Annual Leave Loading.

Upon bringing up this issue myself with Reckon some 6 months ago I was advised that the issue was "being looked at" to include in the next patch or upgrade

Kali

Kevin, I'm not sure why you're being so rude. If you can't add value to a conversation, perhaps refrain from commenting.

Kali

Hi Suellen, thanks for your comment

We do the exact same thing. It really is frustrating isn't it.

Hopefully Rav has an update for us?!  

Kali

Sueellen, I couldn't agree with you more! We're also under a Modern Award so we're in the same boat. Reckon really need to do an overhaul of their product. A 'one size fit all' approach no longer works in today's payroll world.The amount of times i have been told "updates & patches" will come and they never do!

Helen Bowers

Hi Kali. If you have a special award that specifically gives SG (Super Guarantee) to be paid on annual leave loading, then perhaps the easiest way of entering this in Payroll is to simply put the correct figure into that one-off pay. Change to the correct dollar amount as you process that pay. We all get so used to digital processes that we like them to cover every circumstance. They may not be able to do that, so sometimes we have to revert to good old accounting and digital knowledge to make it what is required. Hope this helps.

Kali

Hi Helen,

It's not a "special award" it's one of the most common awards in Australia and i think you will find this is the case under most Modern Awards.

Reckon continues to be out of date in today's payroll world.

This is not just a personal opinion, I know many professionals who will not touch this software due to it being so out of date with it's functionality. 

Perhaps something for Reckon to think about.

Helen Bowers

Thank you Kali. To help my understanding of your problem, would it be correct to say that under that award no employee does any overtime?

Suellen_9723293

hijacking in front of Kali on this one - in the case of the firm I work for and conduct payroll for - our modern award does allow for overtime - but in our firm's practice there is not the expected opportunity to work overtime - therefore the annual leave loading is not a replacement for the lost opportunity - it is intrinsic in the modern award that the 4 weeks annual leave eligibility attracts the 17.5% leave loading and forms part of ordinary time earnings therefore is to be calculated as such for SGC.

Kali

No. There are overtime provisions; however, in the case of an employee working 38 ordinary hours and takes a week off annual leave, it is a directive of the Award that they are paid a 17.5% leave loading (or the relevant weekend penalty) but in this example the leave loading is not a replacement for the lost opportunity of working overtime.

Helen Bowers

Thank you Suellen. What modern award do your employees work under? Do any of your employees ever do overtime? In other words, in a standard pay process do you ever record overtime for anyone under their normal hours?

Suellen_9723293

we work under both the legal services award and clerical awards.  yes some employees do work overtime but only under execptional circumstances and those overtime hours are over and above the standard pay period hours, they are paid the o/t rates for those times.  As there is no expectations nor the regular opportunity for employees to work overtime - their 4 weeks annual leave and it's intrinsic loading are ordinary time earnings when they're taken.

Kali

And my client's under the General Retail, so there's 3 Awards straight up Reckon's stringent approach doesn't work for.

Helen Bowers

In the payroll process of the employee working overtime, do you mark the overtime line as NO Super, of do you mark it as YES?

Kali

We mark ours as 'no' super

Suellen_9723293

Overtime is not ordinary time earnings so it is not included in SGC calculations.  The problem that the original poster has - and i also have - is that SGC should be able to have the option of being included on Annual Leave LOADING as that is a portion within our structure that DOES come under ordinary time earnings.

Helen Bowers

Hi Kali and Suellen. Thank you for the clarifications. It is my opinion that if any employee is paid overtime during the year, then the 17.5% loading on their annual leave directly relates to compensation for loss of potential overtime earnings.

Kali

Helen, do you have any thoughts on the other parts of my email? Re: updates/patches?

How do you get notified of these? Or where do you go to access them?

Suellen_9723293

our professionals have advised us that leave loading in our instance is not attributable as a lost opportunity to earn overtime - as the expectation and opportunity is not there as a regular occurrance, therefore any overtime worked is allowed under the award but it does not absolve the firm from calculating SGC on the leave loading as it is counted as part of ordinary time earnings.

Helen Bowers

Hi Kali. I believe that the Reckon products I have been using for over nearly 30 years as a Certified Tax Adviser, are the best on the market. Reckon Accounts Premier and separately Reckon Payroll Premier. I have always been most grateful when I have rung for assistance. The Reckon website is a good place to start, but for more detailed assistance, a telephone call is very helpful. Reckon generally sends out regular emails to all Advantage Members (and of course Professional Partners, which I have been for all these years). For all my clients over many years I always suggested they join as members to get the best support, as I believe that is the best way to get these products working well for your firm.  Reckon itself works very hard to ensure their products are up to date and with the ever changing legislation. Hope this is of assistance.

Helen Bowers

Hi Suellen. If you are happy with their advice, then there is not much for me to add. Hopefully some of our conversation will have been of assistance.

Suellen_9723293

thank you - but it still doesn't answer the fact that Reckon have failed (so far) in their responses to including an option in their payroll software to accommodate a legislated ruling - where it is an ambiguous one and up to many areas of interpretation that even the ATO can't provide an eloquent answer on - there needs to be the option to include the calculation within the programming as opposed to the current system which does not allow for any options within individual businesses, and many found not to be compliant with legislation when they believe they're covered by using a paid subscription integrative program.

Kali

Hi Helen,

I am glad you've had that experience, as a user & professional partner for 15 years i can't say i have had the same experience. I find the communications very poor and the functionality very basic. There needs to be regular updates & patches to fix known issues instead of "workarounds"

Kali

Thanks Helen. We too have received conflicting advise to your opinion so we'll continue to process as is to avoid SGC penalties.

I appreciate your opinion and time on the matter though so thank you.

If only Reckon could be as actively present as you are.

Robyn Kelly (Partner)

You can tick the Holiday / Leave Loading Payroll Item within the superannaution payroll tem and it will then calcualte 9.5% on the leave loading item, if that's what your business is going to do.

Suellen_9723293

Yes, it is ticked - but it doesn't calculate SGC on the loading - it includes the leave hours in the calculation but still omits the loading value from the SGC 

Kali

I'm sure mine will be too, but where exactly are you both talking?

Kali

Rav still no response?

Kali

The other default that is incorrect is when you process an ETPayment on termination for payment in lieu of notice, the SGC is defaulted to 'no' when it should be 'yes'

Karina_10123604

I too would like to calculate SGC on the loading as our business falls into the category as outlined by the ATO  The only way I can see around this issue is to create a new pay item called annual leave loading and label it with the SGC option to include it in the calculation. Either way though its a manual calculation when it doesn't need to be.

Kali

Hi Karina,

Rav never got back to me/us unfortunately, so i am still currently calculating the SGC manually on leave.

Cheers,

Kali