Superannuation liabilities not recorded correctly. Is it me?

KateSmithKateSmith Member Posts: 5

I have recently taken over the bookkeeping function of a small business when their last person left in a hurry and under a cloud... so no handover... I am mostly across everything I need to do but I found an issue in the recent superannuation Q3 payment. I used the Custom Liabilities function (the same as I did for Q2 successfully). The liability amount for each institution came up on the CHQ register, and the balance of liabilities owing shows as zero. However, each individual entry in the employees' records shows there has been no payment recorded for all weeks in the quarter - therefore there is still a liability amount for each employee. Have I missed a step, and can I fix it? Please help!


Comments

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    Whats happened is the alleged bookkeeper has posted to the liability account directly instead of using the payroll item. Its no biggy. It makes it a tad more difficult to reconcile the liability, thats all.

  • KateSmithKateSmith Member Posts: 5

    So can I undo it? Or change it somehow so it records it correctly?

  • Kris_WilliamsKris_Williams Member Posts: 1,184 ✭✭✭

    Look in your superannuation liability account and see what the balance was at the end of the period. A super report should give you the breakdown by employee and total should equal the balance. Enter a bill for that amount at the end of the said period - this account should now be zero and pay the bill in ordinary bill window

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    You don't need to undo it. Just do it properly from here on. It would be a huge waste of effort to go back and change it. Whoever set it up clearly had no idea. This is why you consult experts like me. Cheers

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    Wrong Kris. You shouldn't be entering a bill. You should use Pay liabilities. Again, this is why we consuit accredited experts.

  • Kris_WilliamsKris_Williams Member Posts: 1,184 ✭✭✭
    edited October 14

    In this instance until the file is correct this would suffice. I was an accredited trainer for many years

  • KateSmithKateSmith Member Posts: 5

    So Zappy, how do I record against each employee it has actually been paid? Right now it shows zero payment in each employee record.

  • KateSmithKateSmith Member Posts: 5

    (And yes, we are discovering a few things that have not been set up correctly!) Unfortunately I’m not an expert and can’t just fix things. Can you recommend a good intro class on Reckon Hosted that I might be able to get some accurate information going forward?

  • Kris_WilliamsKris_Williams Member Posts: 1,184 ✭✭✭

    Best to find an accredited trainer in your area

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    And I've been an AP for nigh on to twenty years Kris. I am pretty sure of my position.

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    Kate it doesn't matter as long as you can show you have paid it. That's what the industry fund clearing house is for. It would be a wicked waste of time to go back and alter Reckon and would potentially cause a whole lot more problems than you would fix

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    Just to be clear, recording the payment in Reckon is proof of nothing.

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    It's MUCH more important to understand the accounting than it is to understand Reckon. I'd look at the Cert IV in financial services (bookkeeping). Any hosted course will not teach you bookkeeping. It's not sposed to

  • Acctd4Acctd4 Accredited Partner Posts: 928 ✭✭✭

    @KateSmith Unfortunately, this does still happen sometimes even when the Super payment is recorded correctly (eg via Pay Liabilities)

    The payments are lump sum totals that have accumulated from paycheques which the system tracks as owing to each fund.  The payment is not reflected under the employee's record itself.  Instead, the Payroll Liabilities report is generated from that "Pay Liabilities" screen so as long as you can see there that it's not outstanding, the ultimate proof of payment is in the Clearing House as per Zappy's advice.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    Acctd id be very interested in seeing the evidence.

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    And obviously, my advice is correct

  • KateSmithKateSmith Member Posts: 5

    I am completely happy that it’s done and recognised where it needs to be ie SBSCH and ultimately the employees’ funds. My problem is the books look messy and incomplete.

    Given there seems to be no one who can explain how to fix it, is there somewhere I can “note” it’s been paid,

  • Kris_WilliamsKris_Williams Member Posts: 1,184 ✭✭✭

    If your superannuation clearing account is zero and the total super paid in the expense account agrees with the total super from the payroll report I would be confident all is correct. That’s my checkpoint that I have used since super guarantee first started

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭

    Look messy? The date paid is in the super reporting. Thanks for asking

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