Upgrading to Reckon Accounts Hosted 2023 - Frequently Asked Questions ✔

Rav
Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

Upgrading to Reckon Accounts Hosted 2023 & STP Phase 2 - FAQ's ℹ


Hi everyone

With the release of Reckon Accounts Hosted 2023, I've put together some key FAQ's on upgrading to the new version and STP Phase 2.


Do I have to finalise the 2022/23 financial year before upgrading to Reckon Accounts Hosted 2023?

Our recommendation is to complete your last pay runs and End of Financial Year finalisation for the 2022/23 financial year in Reckon Accounts Hosted 2022 then upgrade to the new 2023 edition.


When is the 2022 edition of Reckon Accounts Hosted being removed?

The 2022 edition of Reckon Accounts Hosted will be removed on 3 October 2023. Please ensure you have updated to the new 2023 edition before this date.


What should I do after upgrading to Reckon Accounts Hosted 2023 to switch to STP Phase 2?

Reckon Accounts Hosted 2023 will only support STP Phase 2 pay runs & submissions so the first thing we'd recommend doing is using Migration Assistant to update your employee and payroll item information for STP Phase 2 compliance.

Check out the post linked below for more information and a demo on using the Migration Assistant.


How do I know what new information I need to select for my employees and pay items?

While the Migration Assistant will step you through updating your employee and pay items to STP Phase 2 requirements, its important to understand the key changes so that you make the correct selections based on the specific employee's circumstances and/or pay item.

Check out the first help guide linked below for a quick reference checklist and the second guide for an full overview of STP Phase 2.



Can I process my last pay run for 2022/23 in Reckon Accounts Hosted 2023?

Yes you can, Reckon Accounts Hosted 2023 will support two financial year PAYG tax tables in the software. PAYG tax will be calculated for an employee using either the previous or current FY tax table based on the payment date.

Check out more info in the guide below -

⚠ Please note, the 2023 edition will only support STP Phase 2 submissions so you will need to use the Migration Assistant to update to phase 2 requirements prior to actioning any pay runs in Reckon Accounts Hosted 2023.



Can I perform my 2022/23 EOFY finalisation in Reckon Accounts Hosted 2023?

Yes you can however as mentioned above, Reckon Accounts Hosted 2023 will only support STP Phase 2 submissions so once you've upgraded, any submissions including the EOFY finalisation will need to be under STP Phase 2 requirements.



Am I required to update my employee and pay item information in order to send STP Phase 2 submissions?

Yes. There are new information requirements for both employees, such as their Income Type, and new tax tracking types for pay items for accurate disaggregation. Any pay runs created in the 2023 edition of Reckon Accounts will require this new information so we highly recommend that you use our Migration Assistant for an easy, streamlined way to get everything updated.



Do I still send STP submissions the same way under STP Phase 2?

Yes, the submission process hasn't changed. In fact, GovConnect has been updated to show more detailed information to reflect the new disaggregation of gross pay in a submission as part of STP Phase 2 requirements.

Check out the guide linked below to see what's new in GovConnect with STP Phase 2 -


Can I change back to STP Phase 1 after starting STP Phase 2?

No, once you have started reporting under STP Phase 2 in the 2023 edition you will continue to do so moving forward.



I've used the Migration Assistant to update my employee information, but when I try to submit my pay run I receive this error?

After using the Migration Assistant to update your employee and pay item info, there is one final step to complete the transition. Go to Employees ➡ STP 2 Migration Assistant and click Complete STP Phase 2 Setup

ℹ Please note: If there are no changes you will receive a 'There are no STP Phase 2 changes to import' message.



I'm using the STP Phase 2 Migration Assistant however the Tax Tracking Type dropdown options are greyed out?

Those dropdown fields aren't actually greyed out, but we've noticed that on some systems this field appears with a grey background however is still able to be used. Whereas on other systems it appears with a white background. We are still investigating the cause of this but you can use these fields as normal without any issue.


After selecting the 'Yes' option to update the Super Guarantee rate to 11%, it hasn't updated on the Employee Defaults section in Payroll & Employees preferences. What do I do?

Go to Edit ➡ Preferences ➡ Payroll & Employees ➡ Company Preferences ➡ Employee Defaults ➡ Super Details ➡ Change the rate field to 11%


How do I handle all-purpose allowances under STP Phase 2 with Reckon Accounts Hosted?

Check out our help guide for detailed information on how to handle all-purpose allowances in Reckon Accounts Hosted linked below.




Questions?

Do you have a question that wasn't covered above? Let us know in a comment below and we'll do our best to answer it.

Comments

  • Liza Oates
    Liza Oates Member Posts: 74 Reckoner Reckoner


    i have a question about the medicare levy - do we have to get details off our employees regarding number of dependents, marital status etc for permanent residents or citizens as this is not necessarily information our payroll department holds

  • Kris_Williams
    Kris_Williams Member Posts: 3,699 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    No ………………………………………………

  • Liza Oates
    Liza Oates Member Posts: 74 Reckoner Reckoner

    Thanks Kris I was starting to panic.

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

    Hi @Liza Oates

    Just adding to Kris's reply, you only need to make selections for the Medicare Levy Surcharge or Reduction if you have employees who are claiming it. If you don't have any employees that are subject to it, then you don't need to make any selections for it 😊

    I'll add a couple of guides below that contain more info on the Medicare Levy Surcharge & Reduction when it comes to STP Phase 2 -



  • Sonya Herbert
    Sonya Herbert Member Posts: 102 Reckon Star Reckon Star

    how do you know if your employee is claiming the medicare levy surcharge or reduction?

  • Eric Murphy
    Eric Murphy Member Posts: 220 Reckon Star Reckon Star

    @Sonya Herbert your employees should know whether they are or not. Just ask them. I've upgraded a few of my clients now and none of them had any employees doing so, it'll be rare I think.

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

    FAQ above has been updated with a couple of new additions ✅

  • CommPipe
    CommPipe Member Posts: 2 Novice Member Novice Member

    From my research there should be tax tracking for Super Guarantee Payroll Items. I can only see for Salary Sacrifice Super. Am I missing something?

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

    Hi @CommPipe

    There's info on all the new tax tracking changes introduced with STP Phase 2 and for which items they relate to in the guide linked below -


  • CommPipe
    CommPipe Member Posts: 2 Novice Member Novice Member

    That's fine Rav. But it mentions that SG and SS super now need to be reported separately. Even on that list of Items shown there on that drop down list there is "Salary Sacrifice Super (S)" but there is absolutely no option for the Employer Guaranteed Super. This needs to be added. To my knowledge other Softwares already on STP Phase 2 have separate options, one for each type of super.

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

    @CommPipe Super Guarantee remains as is, there aren't any new tax tracking changes required. Salary sacrifice is now separated and has its own tax tracking.

  • Sonya Herbert
    Sonya Herbert Member Posts: 102 Reckon Star Reckon Star

    thanks for the info, unfortunately my employees are a bunch of tradies, that can fix aircons no worries, but when I've asked them if they claim medicare levy surcharge or reduction on their tax returns, I got blank faces ha ha. They said their tax agents do it all for them. Can i clarify, I know personally I was a single mother with 3 dependent children and claimed them for reduction in my medicare levy - so if these employees of mine have a spouse or dependent child, they are likely to have claimed this on their tax return? Can I ask another silly question, why is this now included in STP, wouldn't this only matter when we do our tax return up? What is the advantage of this information being uploaded to ATO now?

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,820 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited July 2023

    Hi Sonya

    The Medicare Levy Surcharge (MLS) Rate & No. of Dependents are information fields only so don’t affect any tax calculations in an employees pay. Most employees wouldn’t even know what the MLS is (as you’ve found) so - unless an employee has specifically indicated otherwise - you can just leave these blank.

    Government is trying to move towards greater automation & streamlining systems so that employers don’t need to provide the same info multiple times to different agencies. It’s a bit hit & miss at the moment as it’s still in the rollout phase but in years to come, I think we will see the benefits ☺️

    On a side note, liability for MLS is determined by multiple other income sources also, including RESC/SS (& even some add back losses!) The liability threshold is also higher if partnered & is removed completely by having Hospital Cover so in RA/RAH, it’s really only a part of the full picture 😬

    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!)
  • Rav
    Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

    ✅ FIXED ✅

    The below has been fixed in the latest update of Reckon Accounts Hosted. This is applied automatically so you don't need to do anything. More info HERE.

    After completing the Migration Assistant, my account numbers (and Show lowest subaccount only) option becomes unticked. What do I do?

    Go to Edit ➡ Preferences ➡ Accounting ➡ Company Preferences and tick the option to use account numbers


  • Rav
    Rav Administrator, Reckon Staff Posts: 16,608 Reckon Community Manager Community Manager

    FAQ above has been updated with new info:

    • Removal date of Reckon Accounts Hosted 2022
    • Help guide for info on handling all-purpose allowances
  • KimBoTCC
    KimBoTCC Member Posts: 15 Reckoner Reckoner

    Hi Rav

    I am having trouble with Non-reportable Fringe Benefits (that some of our employees get as Religious Practioners) - as it still seems to be reporting in their taxable income??

    Could you please advise how these should be set up?

    Thanks for the help!

    Regards

    Kim