Tax Free Threshold Not Claimed

Kali
Kali Member Posts: 341 ✭✭✭

Hi Rav,

Payroll Premier 2021/22 appears to be under taxing employees by $4.00 (per week) who are under the tax scale 'Tax Free Threshold Not Claimed'?

I have tested on a few different employees with the same result.

Can you please have support test this their end and let me know ASAP?

Cheers,

Kali

Comments

  • Kali
    Kali Member Posts: 341 ✭✭✭

    Edit: just tested another employee and it seems to be only affecting employees on the lower gross end i.e $455.00 per week.

    Just tested an employee at $672.00 per week, and tax is ok.

    Both employees set up exactly the same with no other extra tax/rebates.

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,195 Community Manager Community Manager

    Can you provide me the full pay breakdown of the employees you have tested and if you have a link of the ATO schedule you are comparing to then I'll see if the support guys have any suggestions.


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  • Kali
    Kali Member Posts: 341 ✭✭✭

    Hi Rav,

    Employees who are grossing $455.74 are coming up with $98.00 tax - see below:

    This employee is set up as follows:

    According to the current tax tables, the tax on this employee should be $102.00 not $98.00.

    Cheers,

    Kali

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,195 Community Manager Community Manager

    Hi Kali

    I've got some of the product guys looking into this configuration in the table at the moment.

    They've given me some steps to pass on to you which will fix it for you in the interim.

    • Go to Lists ➡️ PAYG tax scales
    • Double click Tax Rate 1
    • In the third threshold row you will see a 1.9003 in the 'Subtract' column. Add a - sign in front of that so it reads -1.9003 as shown in the screenshot below and click OK.


    The above steps will solve the calculation but let me know how you get on.


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  • Kali
    Kali Member Posts: 341 ✭✭✭

    Hi Rav,

    Great - that did fix that.

    Do I need to do that step in all my files or by updating one will it fix the rest?

    Will an update be sent out to everyone as that's something with a fairly big consequence if people are short taxing employees?

  • Kali
    Kali Member Posts: 341 ✭✭✭

    Hi Rav,

    An answer to the above? And any further information from your support guys?

    Cheers,

    Kali

  • Kali
    Kali Member Posts: 341 ✭✭✭

    Hi Rav,

    Any news on the above??

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,195 Community Manager Community Manager

    Really sorry Kali, your earlier replies were caught up in the automated spam filter that the Community uses so I wasn't notified of them immediately. I'll need to look into that as there has been another Community member incorrectly caught in the filter as well.

    Now, in regard to this itself, the product team are preparing an updated tax table patch which will solve the issue with how Payroll Premier is currently calculating employees with this configuration. This due to come out soon and I'll get more info on that out to Community once I have it from the team.

    Also, yes you'll only need to do the steps I outlined in my earlier comment once and it will take effect across all your files.


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  • Kali
    Kali Member Posts: 341 ✭✭✭

    Great - thanks for the update Rav - will look out for the update.

    Will we be notified via email?

    Cheers,

    Kali