Upwards withholding variation - extra tax%

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!

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,395 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited October 2023

    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/

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Wini1010
    Wini1010 Member Posts: 12

    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
    Kris_Williams Member Posts: 3,287 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited October 2023

    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
    Acctd4 Accredited Partner Posts: 3,395 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited October 2023

    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)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Wini1010
    Wini1010 Member Posts: 12

    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!