PAYG on Reckon Hosted differs from ATO

00555600055560 Member Posts: 2

We have a new employee

$138,000 per year

$5307.69 per fortnight

Reckon calculates PAYG as $1496.00

ATO shows as $1358 - not including any medicare levy.

employee card shows 2-tft - no other items ticked.

I have checked the super on payroll item list - tax tracking - none

Taxes tab - default

I have checked employees - tax table information - I have version 2021292 - calculations are updated for 1/7/2020.

Any help appreciated.

Comments

  • CharleyCharley Member Posts: 575 ✭✭✭

    1496.00 is correct; go with that and if the ATO thinks it's less the he'll get a refund at EOFY

  • Kris_WilliamsKris_Williams Member Posts: 2,013 ✭✭✭✭

    Using the tax calculator app I got a result of 1498, by saying employee is claiming the Medicare levy reduction

  • Acctd4Acctd4 Accredited Partner Posts: 1,375 ✭✭✭
    edited June 15

    “… ATO shows as $1358 - not including any medicare levy …”

    This sounds like you’re using the ATO’s “Tax Withheld Calculator” & have specifically selected NOT to include the Medicare Levy (as mentioned above by Kris).

    Reckon’s calculation is correct - as per the ATO’s fortnightly tax table here: https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/fortnightly-tax-table-from-13-October-2020.pdf - as default PAYG calculations should include the Medicare Levy!

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * 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/

    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • 00555600055560 Member Posts: 2

    Shaz,

    Thanks for explaining and giving me the link to the fortnightly tax table from 13 October 2020.

    Unfortunately I googled ATO resident taxes 2021 and this is what I got:

    ''Resident tax rates 2020–21

    Taxable income

    Tax on this income

    0 – $18,200

    Nil

    $18,201 – $45,000

    19 cents for each $1 over $18,200

    $45,001 – $120,000

    $5,092 plus 32.5 cents for each $1 over $45,000

    $120,001 – $180,000

    $29,467 plus 37 cents for each $1 over $120,000

    $180,001 and over

    $51,667 plus 45 cents for each $1 over $180,000''

    I now know I was using the wrong information thankyou.

    Gayle

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