Salary sacrifice

Evelyn Horner

I have submitted my tax return and have been advised that my final submission for eofy in 2022 is wrong. The salary sacrifice figure is wrong and so instead of $5k refund my husband and I have a $1.5k bill. I upgraded to the paid app and sent in a zero return for 2022 fy but how do I now submit a new eofy 22 with the correct gross less the salary sacrifice so that its picked up correctly by the ATO. I rang the ATO and they said there is no deadline for a resubmission so I should be able to do it in your app that I am now paying for but I don't know how to do it.

swakhlu01 .

@Evelyn Horner Sorry to hear you are unable to get phone support for your premium Payroll app. It is a bit unclear whether your incorrect 2022 EOFY payrun report is due to a particular payrun being incorrect or a result of same mistake in multiple payruns. It may be as simple as creating an adjustment payrun for the relevant incorrect payrun submissions or adjust the Initial YTD employee figures but without knowing the details of the salary sacrifice items it is hard to suggest what to readjust. Also unsure why you chose to upgrade to paid Reckon app if you had to lodge a NIL EOFY. This could have been done in Basic version also.

Evelyn Horner

I paid for the app because I couldn't access this chat page. As we are a family trust I paid a large June payment to top of salaray sacrifice to $27,500 to each of us (husband and I) and The Total Gross is correct $75k, tax is correct $9096, Total Superannuation sayd $27,500 and Total RESC is $9000. Thats what is showing in the app. My accountant says it should be

Gross Salary        $54,000

Tax Withheld      $9,096

Reportable Super Sacrifice Contributions $10,200

Superannuation Guarantee Paid by Employer      $5,400

How and where can I adjust this - in the June pay run? Can I post minus figures (I've had my Dec quarter payments rejected due to minus figures).

Any help you can provide would be greatly appreciated. I'm losing sleep over this. At age 67 its all getting too much.

Rav

Hi @Evelyn Horner

If you need to make an edit to an existing pay run you can do so by going into that specific pay run and switching it back to draft status. Once you've made your required adjustments to the pay run mark it as paid again and send the resulting STP submission as an adjustment (tick the ‘Submit as adjustment’ box on the declaration page).

I will add a post below that contains detailed information on how to edit and make amendments to an existing pay run -

https://community.reckon.com/discussion/8031354/how-to-edit-an-existing-pay-run-and-send-an-adjustment-update-event-in-the-payroll-app

Evelyn Horner

After watching your video, I can revert to draft but I can't see how to edit like in the video see attached screen

reckon.jpg

Rav

Ah you're using Payroll Web, apologies I assumed you were using the mobile app.

In that case, after switching the pay run to draft status click on the edit button on the specific employee you're looking to amend and make the necessary adjustments.

I've put together a quick screen recording below showing me editing an existing pay run, specifically changing the hours worked for this employee from 38 hours to 40 hours, re-marking it as paid and then sending the STP submission as an adjustment.

(Click on the screen recording below for a larger view).

Evelyn Horner

no I am using the app on my Ipad

Rav

Ok, then after you've switched the pay run to draft, tap on the employee you wish to edit and it will then present you with the option to edit their pay details within that specific pay run.

I don't have a tablet/iPad on hand so I'll add a screen recording from the app installed on my phone as an example.

Evelyn Horner

As mentioned previously in that screenshot I sent you, I can't click on the employees. I've followed the instructions, set it to draft and then gone in and on the menu selected edit and I cannot click on either my husband or my name. This is getting silly. Can someone edit it for me and resubmit. or is this something to do with the error on the page at the top about phase 1 or is it all too late to resubmit to ato - i.e. too late after the year as my tax return has been done and its incorrect and I have sent a zero 2022 fy year through already.

Evelyn Horner

Can you confirm for me:

1. Is it because my tax return has been done (even though the figures they picked up from STP are wrong) and therefore thats why I can't edit the 22 fy.
2. Is it some error in Reckon software.
3. The ATO didn't seem to think I couldn't resubmit the correct figures.
4. If I am locked out of editing and resubmitting 2022 fy figures, do you have a contact in the ATO for IT errors.

Rav

The solution to this is pretty simple Evelyn. The problem is you're switching the pay run to draft and then going into the menu and selecting Edit.

What you need to do after switching the pay run to draft is simply tap on one of the employees to edit their pay as I've outlined in my screen recording above. Do NOT go into the menu and select Edit after switching it to draft as that edits the setup of the pay run itself eg. the dates and which employees are included.

I've used one of your earlier images as an example below. As you'll see you've brought up the edit pay run screen after going into the menu and selecting edit whereas what you need to do is select one of the employees which you'll see the arrow is pointing to and this is done immediately after switching the pay run to draft status.

swakhlu01 .

@Evelyn Horner Hope you have been successful with adjusting the June 2022 payrun with the correct figures. If you are using Salary sacrifice super to top up to the maximum $27500 allowed then you need to make sure the Gross salary amount is atleast equal to the salary sacrifice super you want to include (less 10% to allow for the system to calculate the super guarantee payable). Please confirm if the figures your accountant has mentioned to include is for June Payrun only or what the EOFY report should show.

Evelyn Horner

No I haven't been able to do anything but send through zero balances and have checked mygov account and its back to zero. The final pay for June is wrong as it was supposed to be a top up of salary sacrifice to 27,500 each and was a final drawdown payment to us as its a family trust and distribution is taxable so I would rather pay the tax up front to the ATO and do a special distribution for June.
When I go back into that June pay run to correct it so YTD balances are correct, it will allow me to revert it to draft but Reckon will not allow me to Edit the pay runs. It seems to be locked. I switched to the paid app, no help. The only thing I can think of is that the the app is faulty, or the ATO won't accept changes for June 22. I tried ringing the ATO but they say I have to do it in the app. I'm thinking the only way to fix it is to cancel your app and get another app and do it through that. The only thing stopping me is that if the problem lies with the ATO then how will another app company help. Can someone confirm that the reason I can't edit the June pay run is not the fault of Reckon????

Rav

@Evelyn Horner

Did you take a look at the info from my previous reply here?

It outlines where you're running into trouble and what you need to do.

Evelyn Horner

Thanks for that, I can now edit the pay run. However I believe my problems lie with my accountant. He used an old spreadsheet to do my tax return not the MYOB data file wages figures. Still that being the case, my salary sacrifice figures didn't come through to the ATO. Overall we paid $75,000 less salary sacrifice of $20k. Is there somewhere in my set up of Reckon where the Salary Sacrifice is not coming through. Last year I finalised my report as follows (What does the REC figure mean? and shouldn't the SS of $20k show separately).

I thought these figures were correct, even though they didn't show the way I expected them to. When I set up Reckon I was able to each month put through $3000 gross for each of us, SS, $1000 and $300 SGC and $95 tax each. When I did my distribution that last June, I made up the figures to match. On $75,000 there should have been $7500 SGC and $20,000 SS and $9096 in tax.

However the ATO doesn't have the $20,000 Salary Sacrifice figure at all which is why I now have a tax bill instead of a refund.

Since I have zeroed out the figures for 2022 FY now,

1. Can I just put through one wage run of the whole year. Or do I now have to go back and do these month by month.
2. If I have made some set up error in how I did salary sacrifice, (there were only 2 options, SGC and SS), please advise.

swakhlu01 .

@Evelyn Horner The missing part in the screen shot you have provided is the Deductions which is shown as 0.

If Salary sacrifice amount was entered as $20000 then the Deductions should have shown $20000. The tax would have been adjusted by the Deduction amount.

RESC is the Reportable Employee Superannuation Contribution and in your situation it should be $20000 if that is the YTD Super Salary Sacrifice amount. I am unclear why it is showing as $9000.

It might be helpful if you are able to provide the screen shot of the June 2022 Payrun that you are trying to Edit.

Evelyn Horner

Every pay run was simple, $3k gross, 1K SS, tax $95 and SGC $300. This final one is wrong when it gets through to the end of financial year

reckon ev pay.jpg

Evelyn Horner

I've just been advised that STP 1 behaves differently to STP 2 - is this my problem.

swakhlu01 .

@Evelyn Horner

The screen shot of June 22 Payrun seems consistent with what you wanted to achieve- You have paid Earnings of $42000 for which SGC = $4200, You also paid $9000 SS so total Super = $4200 +$9000 = $13200. The system has included the $9000 SS Super as Deductions and calculated the Tax of $8051.

Keep in mind in Reckon App the RESC is only displayed in the EOFY report but in the Payruns it is part of Total Superannuation.

Going by your previous 11 payruns from 1july 21 to 30May22 -

Earnings = 11* $3000 = $33000

Salary Sacrifice Super (SS Super) = 11* $1000 = $11000

Super Guarantee (SGC) = 11 *$300 = $3300

Tax = 11 * $95 = $1045

Total for FY21/22 -

Adding the figures for June 22 as per your payrun screen shot to previous 11 payruns-

A. Earnings= $33000 + $42000 = $75000

B. SS super = $11000 + $9000 = $20000

C. SGC = $3300+$4200= $7500

D. Tax = $1045 +$8051 = $9096.

Comparing this with the EOFY 21/22 report screen shot you provided previously -

A. Earnings = $75000

B. Total Super = $27500 (includes SGC of $7500 + SS of $20000

C. Tax = $9096

D. Total RESC should be $9000 + $11000 = $20000 and not only $9000 - which is an issue.

Deductions should have shown as $20000 (which is the amount of the SS Super) instead of 0. This is an issue.

Keeping that aside I am unsure how you expect a tax refund of $5K based on the above figures if the total taxable income is showing as $75000 - $20000 = $55000 - the tax on this for 21/22 = $8,342 (according to ATO calculator). The EOFY 21/22 Tax is showing $9096. A refund of $754.

My conclusion at this stage is that the June 2022 Payrun has been entered correctly. The issue is most likely with the previous Payruns as the RESC should be $20000 and not $9000. It is likely the SS has not been correctly entered. Is it please possible to provide a screen shot of one of the previous 11 payruns. Sorry it might look a bit overwhelming but you seem to be doing the right things.

At this stage I don't believe there is any issue of STP1 or 2.

Please note I am a Payroll App user and am providing the above information based on my experience with using the App. This is not a professional advise.

Evelyn Horner

I have sent a zero return to ATO for 2022 FY and 2023 FY. I've checked my MYGOV account and there is nothing there now both showing zero income for both years.

I would assume that I just go in and enter all my monthly pay runs again and hope that the Salary Sacrifice comes out correctly. I am puzzled though as each one I submitted in December 2022 have all been rejected.

You are right the refund would be ridiculous as my accountant took a spreadsheet figure not my MYOB accounting figure.

So if I can enter all the pay runs again then I can only presume that the software is at fault somehow if the final total is incorrect.

Evelyn Horner

OK. I have resubmitted my pay runs again. Each individual one looks like the attached, and then there is the large June one which is correct.

I have gone in and checked and cleaned out any amounts which were in the (View and update initial YTD balances)

and still the year to date figures now are wrong; See attached.

reckon ytd.png

reckon usual monthly pay run.png

I despair. I really do. Is there a phone number where I can get better support.

swakhlu01 .

@Evelyn Horner

It was my understanding if you had Payroll Premium Plan you should receive technical support from Reckon.

You need to log a fault ticket on

https://www.reckon.com/au/support/ticket/

However, based on what you have provided in your last response - you might be on the right track.

Refer your below comment in last post above -

"I would assume that I just go in and enter all my monthly pay runs again and hope that the Salary Sacrifice comes out correctly. I am puzzled though as each one I submitted in December 2022 have all been rejected."

I am unclear whether these were payruns you submitted for 2021/22 FY or 2022/23 FY. Also unclear why the EOFY 21/22 report you posted on March 1 in this post is different to the one above.

At this stage the single Payrun screen shot example you have provided seems to be correct. Can you please reconfirm if all the 11 Payruns are showing the same amounts under each field or are any of the Payrun's different. As I mentioned previously the June 2022 Payrun is consistent with what you had intended. The EOFY 2021/22 Report is not showing the correct RESC amount and Deductions. If any of the Payruns you submitted in 2021/22 has an error then this could be the reason. YOu need to make sure none of the Payruns in FY21/22 is showing an error. You will have to edit these to make sure amounts are correctly entered and resubmit.

Rav

Hi @Evelyn Horner

How are you entering salary sacrifice into your pay runs?

Have you created your own salary sacrifice item or are you using the default one? There seems to be a lot going on here including zeroing out of previous balances etc etc.

Have you deleted previous pay runs so that those balances are removed from the employee's Year to Date after the zero-out was completed? More specifically, how did you zero out the employee balances? ie. did you use the 'set all values to zero' toggle on an EOFY submission?

On the face value of it I don't think there's a software issue here (I could be wrong) but I'd like to arrange a call for you with one of our tech's so they can go over the actual process you're going through to make sure its correct.

Can you send me a Private Message with the email address of your Payroll App account and a contact phone number.