How to adjust employee's pay in employee centre?

ryulite

Hi all, I am new to Reckon, so I am still trying to figure out how to use the functions. Now I have an employee who just had a promotion and raise, from 14/10/2022 but her new salary will only take effect from 1/11/2022. I need to make some changes to the system. The following are my questions:

1) how do we change an employee from an hourly rate to salary rate in reckon? Do I have to include the super contribution in the salary portion?

2) the employee from 1/11/2022 to 6/11/2022, 7/11/2022 - 13/11/2022, the salary was paid out with the old salary. On top of this, she was converted from a monthly payment to a weekly payment.

Do we need to change the salary in Reckon, to rectify the mistake of wrongful payments for the 1st 2 weeks of November? if we do need to change, how do we change it?

Thanks for the help!

Kris_Williams

If she was paid the wrong amount you can add any difference to the next pay, if you go to her name and click edit in Payroll section you can change her pay details to a weekly payment by hours, and also change the pay frequency to Weekly and when you process the next pay add or subtract and adjustments.

ryulite

HI Kris,

thanks for the prompt reply.

is there anywhere that I could find how to calculate salary adjustments to employees with promotions and raises? I am having issues with the calculation.

I had already changed the pay schedule to weekly. and I had added in her salary figure as well as her hourly rate. will that kind of listing be too confusing?

Also How can I add in her new car allowance that is starting in 1st November 2022 under her employee details.

Kris_Williams

You can delete the salary line now. Not quite sure what you are wanting to calculate re salary adjustments.

Edit her name and select car allowance or add new if not there in the second section. If it’s new it will ask to setup, just go through the screens. Expense account will be Allowances, usually a sub account of Wages.Tick PAYG tax but don’t tick anything in the super tab.

E

ryulite

Kris,

Thanks for the reply and the detailed instruction on how to go through the motions of adding in the extra addition contributions.

for Salary calculations, this was what I was trying to do. I will give only example figures for illustration purposes.

for the months July - Oct 2022 : employee A was on annual salary of AUD 12K + Super.

But from Nov 2022 onwards, A will be bumped up to annual salary of AUD 24k + Super. Also A was initially on a monthly payment basis, but now will be converted to a weekly payment basis from 1 Nov 2022 onwards. So my question for calculations will be

Also,A have to opt for salary sacrifice for AUD 800/month. So... With the new raise and salary sacrifice, how will the salary per week be calculated? in terms of what is the take home pay weekly, the super contribution per month, the taxes to be paid?

Thanks so much!

Acctd4

Hi @ryulite

An Hourly Payroll Item requires you to enter the number of hours on a Paycheque in order to auto-calculate whereas a Salary Payroll Item will automatically calculate based on the Annual Rate entered & Pay Frequency.

eg if you enter an employee's Salary in their record as $ 30,000 & the employee is on a Monthly pay cycle, RAH will automatically calculate this on each Paycheque as $ 2,500 ($ 30,000 / 12 mths) If the employee is on a Weekly pay cycle, it will calculate as $ 576.92 ($ 30,000 / 52 wks)

Therefore, you just need to update the employee record to replace their current Payroll Item with their new Salary Payroll Item, enter the annual amount of $ 24,000 there AND change their Pay Frequency to Weekly (You don't need to recalculate anything as RAH will do that for you 😊):

It's important to recognise the difference between Salary & Hourly though...

Are they really on a Salary ? (This means they get paid the same amount regardless of how many hours they work eg no overtime penalty rates apply)

OR

Is there remuneration just calculated using a base annual figure ... but they can earn more / less each pay depending on the hours they actually work ?

The first scenario is a Salary, the second is Hourly.

For both compulsory employer Super & "Salary Sacrifice" (SS) Super, you need to set up/add these 2 separate Payroll Items under the employee's Super Details section. They need to be configured accordingly (eg the SS Super needs to reduce their PAYG) in order to calculate correctly.

The SS is deducted from their salary before the PAYG in order to reduce the base gross amount (& therefore reduce how much PAYG RAH automatically calculates)

Unless the employee's specific contract is for more, the compulsory super amount is 10.5% of their gross (which again, RAH will calculate for you)

If you would like some 1-on-1 assistance, feel free to email me direct 😊