Tax calculation

Jan_10861662
Jan_10861662 Member Posts: 27 Reckoner Reckoner
edited January 2024 in Reckon Payroll

I have already switched over to Payroll Premium prior to 28th June using download link from email. It is now a bookmark link from my Web browser and used on my desktop. I found errors in PAYG amounts as previously discussed, in one pay run this financial year(Draft) and one pay run last financial year. I have not done EOFY finalisations yet. Your advise in community is unistall and install new. Do I delete bookmark to unistall? Not a App listed on Desktop. Also what is the order of fixing issues once uninstalling and installed? 1. correct last years pay run 2. do EOFY finalisations 3. correct draft of new financial year pay run. Please advise much appreciated

Regards Janet

Comments

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Hi Jan

    If you're accessing your Payroll App account via the web browser, then there is no uninstalling/reinstalling or updating required. That only applies to the mobile app.


    In regard to the PAYG errors, can you provide a bit more detail on this. What are the specific errors you've observed in relation to this? ie. are you able to see where things have gone wrong etc?

    If you can give me more info on that, then hopefully I can get you headed in the right direction.

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Ok I thought my problem was the same as mentioned on the community. Both pay runs have incorrect PAYG

    amounts. As they are automatically generated why are they wrong?

    Regards Janet

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Example last financial pay run dated 26/06/2023 Gross $740 Tax $0 instead of $4. First pay run dated 10/07/2023 Gross $1295-95 Tax $59 instead of $136.

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Hi Jan

    I just did a bit of testing to try and see if I can replicate what you're describing. See examples below.

    I created the following two pay runs for a tax scale 2: TFT claimed employee.

    Tax automatically calculated at;

    • $4.00 tax on ordinary earnings of $740.00 (2022/23 financial year)
    • $136.00 tax on ordinary earnings of $1295.95 (current 2023/24 financial year)


    I think we'll need a bit more info on how you're constructing the pay run, the employee tax scale details and which earning items you're using (if not just the normal ordinary earnings item).

    image.png


  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav,

    Employee details are set at General Casual, Pay schedule Ordinary , Pay frequency Fortnightly.

    Tax Scale 2: Tax free threshold claimed, Income type Salary and Wages

    Is it the same? But different result.

    Regards Janet

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav,

    I am awaiting your response

    Do I go ahead and try to amend pay runs, resubmit or go back to draft and amend? Need to do EOFY reporting

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Hi Jan

    Can you please advise how you are creating the pay run ie. What are you entering into the specific fields in the pay run for the pay run eg. are you selecting the option to copy pay items from a previous pay run, or are you adding these in manually, does the employee have any pay items assigned to them in their Pay Setup section, what are you entering in the Earnings field etc etc?

    If you have screenshots that would be a huge help.


    At this stage, I don't know why you're receiving the results that you are currently so I need a bit more info to see what is going on.

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav,

    Please see the following

    image.png


    image.png


    image.png
    image.png
    image.png

    Hope this answers your questions, let me know if you require more detail and I await your response

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Thanks for that Jan.

    I notice that in the Pay Setup for this employee, the default quantity/hours is set to 2 ie. 2 hours. Is that correct? Are you manually changing the number of hours that this employee has worked when you are creating the pay run?


    image.png


    Can you show me this specific screen in the pay run in question.


    I'm still not quite clear on why you're encountering the results that you are and why they differ from mine in my tests.

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav,

    Yes I manually change the hours each pay run as the hours vary (Casual). When setting up I thought it was on 1 and tried to change to 0 and it didn't like that so I thought it was left on 1. If changed to 1, will it correct the result?

    image.png


    Thanks for your assistance and I await your response

    Regards Janet

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner
    image.png
    image.png

    Correction I think these are the screens you needed

    Thanks I await your response

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Thanks Jan

    What do you expect the tax amounts on these pay runs to be? And where are you comparing the components for them to?

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Noted tax amounts expect at the beginning of posts They are for pay run dated 26/06/23 Tax $4- and pay run dated 10/07/23 Tax $136-. This info is based on Fortnightly tax table from 13/10/2020.

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Thanks Jan

    I'm not overly familiar with how this is coming about so I've put the details of this together into a case and sent it over to our product dev team just to check over whether Reckon Payroll isn't doing something correctly or if there's something in the setup/configuration that is leading to this.

    I'll let you know as soon as I hear more info about this from the team.

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Thanks Rav

    I'll await your response

    Regards Janet

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav

    Have you not heard back from the product dev team? How long does it normally take? Need to do next pay run over the weekend and EOFY beforehand

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    I haven't yet Jan.

    Its currently assigned to a dev for further investigation so I'll need to let them do that but I'll come back to you as soon as I hear back.

    Cheers

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager
    edited July 2023

    Hi Jan

    I've just heard back from the dev team. They've asked for you to please try again now.

    When doing so, can you please ensure that you do not enter any dates into the Period fields when adding the earnings item. Tax amounts should then calculate normally.

    image.png


    I am however still waiting to hear a bit more info around this in particular when those fields should be used since I was of the understanding its used for casual employees which yours is in this case.

    Let me know how you get on.

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav,

    Thanks for your info. The pay run for 26/06/2023 has changed with corrected tax calculation but the super details have gone and the pay run for 10/07/2023 has wrong Gross should be 1295.95 and then net should be 1159.95. Super is included and correct

    Please advise. I will do next pay run after advise and doing EOFY processing

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Hi Jan

    For the 26/6 payrun, did you edit the existing payrun or did you create it from scratch?

    I think it's best to create a brand new one (delete any existing payrun if you have one). That should get things right and but let me know how you go.

  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav

    Ok I deleted all the pay runs 26/6 onwards.

    Created new pay run for 26/6 adding details manually, now correct. marked as paid and resubmitted to ATO. I will do EOFY process next and then process July pay runs. Is this ok?

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Good work Jan. Yes you should be good to go for creating and sending your EOFY finalisation.

    Before you create your July pay runs, you'll need to ensure you've completed the STP Phase 2 Ready Checklist (if you haven't already) so that you're STP Phase 2 compliant for pay runs dated 1 July 2023 and after.

    Any pay runs and STP submissions that are created for the 2023/24 financial year need to be under STP Phase 2 requirements and our Ready Checklist will allow you to update your employee and pay item information in bulk. Check out more info below -

    https://community.reckon.com/discussion/8032948/get-ready-for-stp-phase-2-with-our-ready-checklist


  • Jan_10861662
    Jan_10861662 Member Posts: 27 Reckoner Reckoner

    Hi Rav,

    Thanks for all your assistance

    Completed EOFY finalisations and already did checklist and switched prior to the 28th June.

    Added first 2 pay runs for 2023-2024 with changes for Super and pay rates between and sent to ATO.

    All completed with no problems, now up to date

    Regards Janet

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,652 Reckon Community Manager Community Manager

    Great work Jan, glad things are back on track 👏

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