Overpaid employee - not enough tax deducted - how to rectify?

Prior to the (new/only) casual employee's details being put into Reckon Hosted, the employee's deductible tax was calculated by hand using the FY19 tax tables instead of FY20.

Now that the numbers have been put into Reckon and we can see that not enough tax was deducted for 4 weeks. Is there a way to rectify the discrepancy in Reckon? Should we create some type of adjustment for the shortfall of tax deducted and then apply this adjust to the next paycheque?

Many thanks,

Comments

John Graetz

Lee. My opinion is that you do as you have suggested, that is, for the next pay that you make, manually adjust the amount of tax to be deducted so as to bring it up to where it should be for the year to date.
John L G

Lee_8688889

Thanks John

ARRB1

I allowed Reckon Hosted to calculate the correct tax for an employee but it is incorrect. How do i change this in the system?

Kris_Williams

Adjust the tax manually in the next pay, and then try to work out why it was wrong. Does he have the correct tax scale e.g.

Are there any deductions that may be entered as tax free? And so on……

John Graetz

Another "favourite" reason why it can be out (if this was for a new employee) could be that you have accidentally designated that SGC should be taxable. I would suggest that you have a look at the SGC setup for this employee. John L G.

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