Error message on processing leave without pay or otherwise no tax withheld

FWH
FWH Member Posts: 10 ✭
in Reckon Payroll Upgrade for Reckon One 🚀

Hi


i have an employee who is currently on leave without pay. When I try to input the withholding tax as “0” I get an error message that states “Error Lump Sum Tax is only applicable for these calculation methods: Additional Payment method A, B(I), B(II), and Return to Work”


it also will not let me leave the box blank and still process the pay run.


Can you please advise of a solution? In STP 1 this happened automatically with the leave without pay option.

Comments

  • Eric Murphy
    Eric Murphy Member Posts: 213 ✭✭✭

    What are you entering into the payrun? It sounds like you're using something for earnings. You might need to create a leave without pay leave item.

  • FWH
    FWH Member Posts: 10 ✭
    https://community.reckon.com/discussion/comment/20640928#Comment_20640928

    I'm deleting the default salary item and then putting in a leave without pay item. However, there is a withholding tax box there which doesn't accept "0" as an answer and also doesn't allow me to leave it blank.

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,087 Community Manager Community Manager

    Hi @FWH

    It sounds like you may have setup your leave without pay item as an earnings item rather than a leave item, is that correct?

    As a test, I created a custom leave item and added it to a pay run and it seemed to work ok in this case -

    image.png


    Reckon Logo - Signature.png
  • FWH
    FWH Member Posts: 10 ✭

    I ended up solving the issue through going in and changing the employee's default - there doesn't seem to be a separate option for a leave item if trying to change on the individual item - all the options are in "earnings and leave" and all the options require the withholding tax box to be filled in and don't accept "0"

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,087 Community Manager Community Manager

    The Earnings & Leave dropdown will display all items that are setup as either earnings or leave type items. However an item that has been setup as an earnings item will prompt for the tax component to be entered.

    If you haven't already, I'd recommend taking a look at perhaps setting up a leave item for this instead of an earnings item in Settings ➡️ Pay Items ➡️ Leave


    As you'll see from my previous screenshot, there is no tax component being prompted in the pay run when using that leave item and a zero $ rate.

    Reckon Logo - Signature.png
  • FWH
    FWH Member Posts: 10 ✭
    https://community.reckon.com/discussion/comment/20640984#Comment_20640984

    Thanks

    I've not actually changed any of the item categories from the defaults in Reckon One so it might be an issue which will come up for other people as well transitioning to STP2

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