How to calculate tax on a shorter payroll period

Rosie
Rosie Member Posts: 120 ✭✭

Hi there,

We are looking at moving the day we process our fortnightly pays. This will result in one extra payroll that will pay the employees for 4 days and then we will resume our fortnightly payroll processing. This is required in order to change the dates of our payroll period.

29th Jun Normal Pay day 14 day pay period

5th Jul Additional Pay day 4 day pay period

19th Jul New "Normal" Pay day 14 day pay period

My question is how we go about calculating the tax for this extra pay. If we allow Recon to calculate the tax it will use the fortnightly tax table and will not deduct enough tax.

Any advice or guidance would be appreciated.

Thankyou

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,404 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Rosie

    Change the first day of your new pay period in your Preferences (from the Edit dropdown menu > Time Tracking) here:

    This will ensure the new auto-generated pay period dates are correct going forward.

    There's no need to edit any tax amounts - It will iron itself out as - tax-wise - your last (old) pay period will also be incorporating part of the new one too 😊

    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

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)