Reckon One Payroll Update - WHM Tax not calculating after $45000

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Michelle Fendt
Michelle Fendt Member Posts: 22 ✭✭

The tax for WHM is showing as zero after they reach the $45000 earnings instead of 32.5%. I have manually overridden the tax for now although I am wondering if anyone else has the same issue?

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  • Rav
    Rav Administrator, Reckon Staff Posts: 15,678 Community Manager Community Manager
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    Hi @Michelle Fendt

    I think we might need a bit more info on this. While I don't have much expertise in this area, I raised your post with my Reckon Payroll dev team to take a look and they did a bit of testing which seemed to calculate the tax component correctly. See a couple of examples below -


    Employee is paid $2,500.00 gross, tax is calculated at 15% = $375.00


    Employee is paid over $45,000, in this case $45,500.00, tax is calculated at;

    • $45000 at 15% = $6750
    • $500 at 32.5% = $162.50
    • Total tax = $6913.00 (rounded)


    Can you give us a bit more info on the breakdown of the employee and pay run where you're noticing the tax is being calculated at zero. If you have screenshots that would be a massive help and feel free to blur any sensitive info.

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  • Michelle Fendt
    Michelle Fendt Member Posts: 22 ✭✭
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    Hi Rav,

    It is happening to all employees who have reached $45,000 for the financial year with the WHM tax rate applied to their profile.

    It calculates correctly each pay up to the $45000 at 15% but any pay run after that is zero. Did the dev team post the pay runs to ensure the employee has previous pays over $45000 then create a new pay run and have any issues?

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,678 Community Manager Community Manager
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    Thanks for getting back to me @Michelle Fendt

    I just gave it a go in my own account, set up a new WHM employee and gave them a $45,000 YTD earnings balance. Then I created a new pay run and after adding in the earnings component the tax calculated at zero, the same as what you've found in your examples above.

    I'll speak with the dev team again and get some more insight into this and in the meantime can I get you shoot through a private message to me with the email address of the Reckon Payroll account this relates to along with the book name (if its not the same email address as your Community account).

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  • Rav
    Rav Administrator, Reckon Staff Posts: 15,678 Community Manager Community Manager
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    Hi @Michelle Fendt

    Just wanted to follow up on this. I know its been a fair while coming but I wanted to let you know that a new update has just gone through which brings in a fix for this particular situation.

    Tax will automatically calculate for a WHM employee even after passing $45,000 YTD earnings.


    If you can please give it a go when you next have a chance and let me know how you get on that would be great 🙂

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  • Michelle Fendt
    Michelle Fendt Member Posts: 22 ✭✭
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    Thank you @Rav

    At this moment there are no active employees who have passed $45,000 in the file. Once we have one reach that stage I'll let you know if I'm having trouble again.