Help Debt in Reckon Hosted

Question

Hi is this calculated automatically on the wages an employee earns and therefore recalculated to new rates for 2023/24?

I have a casual on an hourly rate and have ticked the Help Debt but no idea how much it is taking out, should I be able to see this?

It does not show up on her payslip.

Barbara Allen-Guthrie · Answer

https://community.reckon.com/discussion/comment/20638043#Comment_20638043

Thank you Shaz that is a relief

Acctd4 · Answer

Hi @Barbara Allen-Guthrie

Yes, it resets each FY & yes, when applicable, it will be included in the total PAYG Tax amount shown, not as a separate line.

The system calculates PAYG Tax by annualising the gross amount on the Paycheque - to determine if the relevant threshold will be exceeded - then will pro rata it, according to the pay cycle.

Therefore, unless the employee is also on a very high income or not claiming the TFT, the extra tax will not be applicable yet ☺️

Kris_Williams · Answer

I believe the help debt is included in the total tax, and not broken down in any way. The updated version will calculate correctly. If you want to check you can look at the tax table. I find the ATO app on phone very handy, check the amount without HELP and compare with Reckon. I don’t know a lot about it but as it is based on income it may not always deduct any extra. If you find that to be the case and the employee wants extra deducted you can manually override the tax amount, or even set it up permanently in the employee’s record.