Processing Lump Sum E

How can I process a payrun in the Reckon STP app that includes a Lump Sum E component?

It shouldn't show in Gross Payments, but i can't see any other options.


Thanks.

Comments

  • Carol CornwallCarol Cornwall Member Posts: 5

    Do we have an answer to this question please?

    I am having the same problem

  • swakhlu01 .swakhlu01 . Member Posts: 202 ✭✭✭
    edited September 4

    In Reckon Payroll app you are able to create Custom earnings items. This is possible to add in the Settings function. It also allows the selection to calculate tax and superannuation on this earning type. I am guessing you can call this " Lumpsum E".

    For details on custom earnings item refer to https://help.reckon.com/article/wue9g3b9qa-reckon-payroll-app-settings#adding_new_earnings_item

    But I don't know how this will show up in the Employee's Income statement. Most likely as Gross Earnings which does not help you directly.

    I understand according to ATO instructions, the payer has to issue a Letter to the employee detailing the Lumpsum E payment involved and the year (s) to which the arrears payment applies unless the amount is less than $400. At time of filing the annual tax return the employee has to ensure the payment is correctly entered for the relevant year(s) to avoid overpayment of tax in the current assessment year.

  • Carol CornwallCarol Cornwall Member Posts: 5

    Thank you Swakhlu01 this confirms that I have been going in circles and I will now write a letter.

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