Tax Discrepancy between Payroll Premier & Reckon Payroll

Kali

Hi Rav,

I mirrored a pay run in Payroll Premier and Reckon Payroll and have a $5 PAYG discrepancy for an employee who does not claim the tax free threshold.

This employee is paid fortnightly, casual and does not claim the tax free threshold and earned $639.73 gross in their last pay run.

Payroll Premier calculated $142.00 PAYG (correct according to ATO tax tables).

Reckon Payroll is calculating $137.00 PAYG (incorrect according to ATO tax tables).

Can you explain why Reckon Payroll is short taxing her by $5.00?

This concerns me greatly. One can only hope the tax coding was given thorough testing before going live?

JANE_9714211

I would like to know why tax is calculating incorrectly also.

Several of our employees had the wrong tax calculated as I compared it to their last pay in the old Payroll Premier app. I had to manually change the tax.

Rav

@Kali

I just ran a test in my own book with the same parameters that you've outlined and it seems to work as expected/correctly according to what you say is the correct amount of tax in my case. See screenshot below.

Can you provide some more specific info on what you're inputting when creating your pay run.

Angella

I noticed only after processing that an employee who Salary Sacrifices (SS), it did not treat that as a pre-tax deduction, therefore, ended up paying more tax. I found that changing it over to Salary Sacrifice for Super seemed to correct this. Just wondering why there are so many categories, why not just keep it simple.

JANE_9714211

https://community.reckon.com/discussion/comment/20640552#Comment_20640552

Thanks for posting this information. I am going to try and switch over to Salary Sacrifice for Super next payrun. It will be interesting to see if this corrects the tax issue.

Gayle_10863666

Thank you for the info Angella and Jane, I have set all my employees up with the below also, the same as we had in Payroll Premier, I deleted the others. I am doing my first pay run today and going to run Payroll Premier side by side to check everything, going to be interesting!!

Maybe Rav can shed some light on this and if they should work the same, both of these that came across from Payroll Premier both have the same superannuation type (Salary Sacrifice and Super guarantee) as the other 2 have.

JANE_9714211

Your'e welcome and good luck with the payrun today, Gayle. 🤞

Kali

Hi @Rav

Are we running the same version as you? App version 1.32.0?

Because I am definitely getting a different PAYG amount populating? Which is concerning in itself.

I have rolled this file over to STP2 but have not finalised the first run?

I know Payroll Premier used to have a glitch where you would have to manually change the PAYG for the first run after new PAYG tables but would then default back to the correct amount after that - could this be the same?

Kali

@Rav any update on this? I'm still having the above tax discrepancy for a casual employee, not claiming the tax free threshold in multiple files?

Rav

There aren't any different versions so my example above is exactly what you'll be using.

I've just run another test and receive the same result from my screenshot above ie. $142.00 in tax.

If you're continuing to experience a differing result, then I'd recommend giving our technical support team a call and a technician can take a closer look into what you're inputting into the payrun 🙂

Kali

Hi @Rav - what number do i call? When i have tried in the past - the help desk doesn't seem to know how Reckon Payroll works? This is really frustrating.

Kali

I spoke to technical support - the discrepancy happens when you enter the dates for a pay period. When you delete the dates, then the tax corrects itself. Another fun glitch.

Rav

I'm not sure that actually is a 'glitch' although I could be wrong. Is there a specific reason you're entering dates into the earnings itself when the pay period and pay date has already been entered for the overall pay run?

Kali

Just for completeness, but lesson learnt not to as it generates an incorrect tax for those you do it for.