Tax Incorrectly Calculated

659441

Hello,

Just about to do my first pay run for the financial year using the new system and I have 1 employee out of 13 that is having an extra $80 in Tax taken from their pay.

Nothing has been changed and I have gone through their Master file to see if anything has been added (i.e.: student loan, extra tax etc.) and it is the same as it has always been and as everyone else's is.

I can manually change it to the correct amount but it won't save it as a default.

Rav

Hi @659441

You've created this post under two different Reckon software; Reckon Accounts Hosted (this one) and Reckon One (this). Can you please confirm which software you're using ie. which does this query apply to?

Also, can you please provide a breakdown of how the pay run has been constructed for this particular employee and the tax settings you've entered in their profile.

659441

Apologies, I accidently posted to Reckon One. I am on Hosted

659441

The Employee is a Closely-Held-Employee, entitled to Wages and 4 different allowances. Super as normal, no Salary sacrifice, no student loan or tax debt. Earns the same as another employee but is not being taxed the same.

Acctd4

@659441 What Tax Scale code have you allocated them & have you entered the additional tax in their record ?:

659441

Carried through from the previous years, nothing is entered in the tax scale nor is any extra tax added to deduct

Acctd4

It may have just been auto filling based on previous entries then.

If the tax is manually determined, it should have 8-No TaxC selected with the specific amount or % entered as per above.

659441

No, he's never had that amount taken in tax previously. Last week's pay 28/6 was the same as this week's with tax calculated at $539 to deduct - other than single dollar additions to allowances in the new financial year, this week it wants to deduct $620.

Acctd4

Ah I see! 🤦 So you're saying it's suddenly just randomly deducting an additional $ 80 ?

Check the configurations on those Allowances & also on the PAYG Tax & Super - it sounds like something has been inadvertently selected/de-selected. This can occur when new Payroll Items are added as the system doesn't also update the selections/links on existing ones.

659441

Thank you for that, but wouldn't the software also do the same for the other employees with the same payroll items, yet those are ok? It is definitely a glitch that I can see.

His ONLY difference is being a closely held employee. I did change it to SAW to try it but nothing improved.

Acctd4

It's difficult to say without seeing it - Has the other employee got a Tax Code assigned ? If so, then they may not be affected (or may be affected differently)

There will definitely be something that's unique to this particular Employee - either in his record or in his Paycheque.

Are you able to upload a screenshot/snip of his Federal Taxes tab & applicable Paycheque ? (You can black out any identifying info)

Sharlien

Hello :-) I have an employee with the exact same issue - new employee set up in July 2024 and for some reason reckon is deducting an extra $39 PAYG. total pay is $1064 PAYG should be 164, but reckon keeps insisting it should be $203. Absolutely no reason! We keep having to manually adjust each pay run. Employee tax set up screen shot below:

Acctd4

Hi @Sharlien

It sounds like one (or more) of your Payroll Items are incorrectly configured, often a Super Payroll Item (or another non-taxable component) may have been inadvertently ticked for PAYG Tax.

Are there any Payroll Items used only on this employee ?

Sharlien

Thank you! PAYGI tax was ticked on for this employees particular super, I've fixed it up and will report back to the bookkeeper what the problem was. Thanks very much!! :-)

Acctd4

Great to hear @Sharlien ! 👏🏻👍🏻☺️