Payroll Tax & Work Cover

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Gayle_10863666
Gayle_10863666 Member Posts: 36
edited January 3 in Reckon Payroll 🚀

Question 1.

I can't find where Payroll Tax settings are in Reckon Payroll, I'm looking for the equivalent to the below Payroll Premier settings please. Also, where is the Payroll Tax exempt flag for a payroll item? The tax applicable option in payroll item is referring to PAYG isn't it - or could this be referring to both Payroll Tax & PAYG ?

Question 2.

There was an item in Payroll Premier called Compensation for Work Cover payments, I can't find a Compensation item anywhere, so I assume I need to add it as a pay item, I need to be able to input it as a UNIT, as it is a varying lump some amount each week, any suggestions as to which pay item I use, it can't be OTE as that doesn't have a unit option? Appreciate any help please - Thank you - (I have done a lot of searching but can't find the answers)

Answers

  • Gayle_10863666
    Gayle_10863666 Member Posts: 36
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    Re Question 1 above - This is the setting in Payroll Premier for a pay item that you could exempt from Payroll Tax, where is the equivalent in Reckon Payroll please, thank you


  • klaura
    klaura Reckon Staff Posts: 116 Reckon Staff
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    Gayle_10863666,

    This item has to be created in Settings>Pay Items>Create earning item>

    Reckon Payroll, unlike Payroll Premier, requires you to untick the box in order to exclude an item from tax.


  • Gayle_10863666
    Gayle_10863666 Member Posts: 36
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    Hello thank you for the reply, I need it to be taxed (PAYG) but there is no payroll tax on work cover compensation payments, where do I flag no payroll tax for this earning item? In Payroll Premier there was an option (above) for an item to be ticked payroll tax exempt?

    Then the monthly payroll tax report would have a column for exempt payroll tax amounts. Thank you

  • klaura
    klaura Reckon Staff Posts: 116 Reckon Staff
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    The button Tax Applicable in Reckon Payroll is used to identify whether an item is subject to tax or not. It serves the same purpose as Payroll Premier did. The distinction is that if an item is subject to tax, this is checked in Reckon Payroll. 

    You can select Variable when creating a pay item for an item that uses Unit.