Upwards withholding variation - extra tax%

Wini1010

Hi, does anyone know how to set up an upwards PAYG withholding variation in Reckon Accounts Desktop for an employee who has requested an upwards variation for extra % tax on top of normal withholding amounts?

I can see options to enter an extra $ amount (extra tax field) or a flat tax % (Tax % field), but not an extra tax %. Thanks!

Acctd4

Hi @Wini1010

I believe the employee needs to have nominated the additional $ or % amount in their upwards withholding application to ATO (based on their particular circumstances).

https://www.ato.gov.au/General/Online-services/Online-services-for-individuals-and-sole-traders/ATO-online-services-and-myGov/Using-ATO-online-services/Access-and-complete-employment-forms-in-ATO-online/

Wini1010

Hi Shaz,

Thanks for your reply. The employee has requested an additional 5% of gross on top of normal withholding each pay period. I was wondering how to set that up in Reckon. Any advice appreciated.

Kris_Williams

I have played around to try and get an answer for you but other than entering a $ amount I see no other way. Either that or you would have to manually calculate each week and override the standard amount. There may be a way but I couldn’t find it

I don’t know what the Extra tax % box is for but I couldn’t get it to work

Acctd4

Unfortunately, there's only a $ option in RA/RAH, not a % (I thought the % might have worked also but I've just tested it & it's only applicable to use as a set % complete PAYG override 😬)

Is the employee's pay the same each time ? If so, you can easily determine the $ by multiplying the gross by 5% & entering this default amount in the Extra Tax field. If that's not the case, the other option would be to estimate the employee's total gross for the FY & enter 5% based on that. Otherwise - if the gross varies - the only option is to calculate it manually & override the auto PAYG calculation each time. If this is the case, I would speak to the employee & explain this limitation to see if he can decide on a set $ amount instead (You could also determine this by estimating his annual income for the FY)

Wini1010

Thanks Shaz and Kris. Appreciate the workarounds.

Hopefully Reckon add this option to RA/RAH given the ATO says employees can request this and the option is on the related Mygov form. Looks like it's in some other Reckon products, not sure why it's not in RA/RAH!