Wrong PAYG entered for Backpacker


I have situation where the wrong tax percentage was entered for an employee who is a working holiday maker. The tax rate has been rectified in Reckon Plus 2021, back to the 15% rate. The backpacker had not informed me of my mistake [which it is!] was put on to the 2-TFT [white paper info followed] he now has reported the mistake and would like to get the difference returned as pay or put into bank account. The time frame was over a four pay run period. I have read some discussions on adding a deduction for the amount of this difference, then clear the deduction with a cheque or deposit. Even thought of doing an adjustment for the one employee in a pay run of the dates made. But I do not want to make a major mess of this all, so I am willing to accept help from you professionals out there.
Malcolm
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Hi Malcolm
Work out what the total net pay difference is then create a new Paycheque for it - You might want to set up a new Payroll Item (eg Net Pay Topup configured for no PAYG or Super as that should have calculated on the original gross)
NB: You may need to do a YTD Adjustment to correct the PAYG as this can’t be minused on a Paycheque.
This will then ensure the YTD amounts are also all correct.
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
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Thank you it work out fine.
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