Salary Sacrifice - still taxing on gross including sacrifice?

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Hello

Using Reckon Accounts Hosted. Just set up a Salary Sacrifice payroll item last week, upon use in today's pay run saw that the PAYG Tax amount was still calculated on the gross including SS, where may I have gone wrong?

I have tax tracking set to salary sacrifice (cos STP2), and I have 'PAYG Tax" NOT ticked in the payroll item.

Sorry for fresh query but all answers I found on here were from prior to STP2, saying to change tax tracking to gross payments, which I guess can't be the fix now due to STP2. Thanks :-)

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,497 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited October 2023
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    Hi Sharlien

    You need to have PAYG TICKED - This window just indicates whether PAYG is "affected" - rather than meaning to "tax" it - so it needs to be ticked to ensure it's reduced (in the case of SS) 😊

    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!)
  • Sharlien
    Sharlien Member Posts: 16
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    I did wonder if that might be the case, thank you! Will go try again :-)