Pre-tax deduction amount not showing in resc column for one employee and salary sacrifice issues

JANE_9714211

Hi Team,

1. As I haven't done the EOFY report for the ATO, I was checking the Payroll summary for 23/24 financial year and noticed a discrepancy. One of our employees was doing salary sacrifice but decided to stop contributing in December 2023. Looking at the Payroll summary, I noticed that the salary sacrifice he did contribute appears in the "Pre-tax deductions" column but not in the RESC. We have other employees that do salary sacrifice and their contributions appear in both the "Pre-tax deductions" and RESC columns. Why has this happened for just one employee and how do I fix this?

2) When we migrated from STP1 to STP 2, I selected the Salary Sacrifice (SS) tab for several of our employees who were contributing to their Super fund but didn't realise until after a few pay runs, it was the wrong tab to select as it was treating the Super as a post-tax deduction. I called Reckon and I was advised to select the "Salary Sacrifice for Super" tab instead. I wish I had known this from the beginning as now in the 23/24 financial year report, I can see those post-tax - Salary Sacrifice (SS) deductions. Are there any implications regarding reporting the EOFY to the ATO?

I would appreciate an urgent help on this matter as I want to sort it out asap!

Thank you.

Rav

Hi @JANE_9714211

It's hard for me to make any definitive suggestions without more specific information or seeing the book but let's start with a few things first;

In regard to point 1.. I'm assuming that salary sacrifice was actioned within Reckon Payroll itself, correct? Or was it a balance migrated from your previous Payroll Premier software?

If it's the former, then can you let me know whether you used the default salary sacrifice item for this employee when adding their salary sacrifice balance in a pay run(s) or did you use a custom salary sacrifice item?

Regarding point 2, sorry but I need more info the SS tab you're referring to. Similar to the above, do you mean you have a custom salary sacrifice item?

JANE_9714211

https://community.reckon.com/discussion/comment/20647114#Comment_20647114

Hi Rav,

1. I have looked at the person's payroll details and I will try and explain the best way possible where I think the error has happened. When we migrated to STP 2 in Sept 23, their salary sacrifice (SS) amount was brought over from Payroll Premier. However when setting them up in STP 2, I chose the Salary sacrifice - SS option thinking this was the right choice because under the "Superannuation" tab in Reckon One, there are two Superannuation pay items to choose from Salary sacrifice - SS and Salary Sacrifice for Super.

I chose Salary sacrifice - SS at the time as I thought it was the right one (same description that was in Payroll Premier). Not knowing at the time this was the wrong option because it treated the salary sacrifice as post-tax instead of pre-tax. When I picked up on the error I was using the wrong salary sacrifice option, I changed it to Salary Sacrifice for Super.

I checked the person's payslip and there are three salary sacrifice amounts showing. I obviously stuffed up somewhere when entering details last year (it was hectic during the migration period) and it would appear that the salary sacrifice amount from Payroll Premier is the amount missing in the RESC column. This is what I need to fix asap!

Salary Sacrifice (SS) - The amount post-tax deduction (On the payroll summary)

Salary Sacrifice (SS) - The amount brought over from Payroll Premier (Not on the payroll summary)

Salary Sacrifice for super - The amount deducted pre-tax deduction (On the payroll summary)

2) Yes, under the Superannuation tab in Reckon One, there are two salary sacrifice options. I chose the wrong one as pointed out above. There really isn't a need for two options. Salary Sacrifice for Super (pre-tax) was all I needed to choose had I known. I now have 3 pay periods where salary sacrifice is sitting in the post-tax deductions column for several employees. I don't know if it's going to be an issue when lodging the 23/24 EOFY report to the ATO.

I really hope you can help me fix this mess as I need to sort it out before 14/7/2024.

Thank you.

Rav

Gotcha thanks for the extra info @JANE_9714211, makes a lot more sense now 👍

Ok from what you've described, my recommendation would be to make a few edits to get things back in-line which I'll try to explain below.

Specifically, if you have pay runs created within Reckon Payroll itself that include the Salary sacrifice - SS item only then I'd recommend editing those pay runs, removing that item and instead add the corresponding balance into the salary sacrifice for super item in the pay run. Once that is done, re-mark the pay run as paid.

You don't need to send an update event for this change as the EOFY finalisation will take care of that later on.

Refresh the EOFY finalisation and/or create a new one and those salary sacrifice balances should update and reflect in the RESC and salary sacrifice columns.

Separately, I just want to add a note in regard to the Payroll Summary report in Reckon Payroll more as an FYI than anything. The Payroll Summary report shows the balances of pay runs that you've created within Reckon Payroll itself only, it does not include initial YTD balances that have been added to an employee (there's some info on this HERE).

Your balances migrated over from Payroll Premier would have come through and been added to each employee as an initial YTD balance. So with that in mind, I'd recommend checking the employee initial YTD balances in their profile and just confirm whether there are any balances listed using the Salary sacrifice - SSitem as well.

I know that's a fair bit of info to take in so if you have any questions please let me know.

JANE_9714211

https://community.reckon.com/discussion/comment/20647140#Comment_20647140

Hi Rav,

I'm really not comfortable to go changing the Salary Sacrifice (SS) to Salary Sacrifice for Super with this one employee. This whole STP 1 to STP 2 has been a nightmare.

Could I ask if someone from Reckon Technical support can contact me directly via my inbox, just to have a look at our book only (not to make any changes) as I just want to get a better idea why this one employee's salary sacrifice isn't showing in the RESC column. I have been instructed not touch the salary sacrifice "post tax deductions" details.

Thank you.

JANE_9714211

Hi Team,

Any chance I can get someone from Reckon Technical Support to look at our book as I really need to fix the salary sacrifice not showing for one employee in the RESC column. I don't want to go messing with the previous pay runs and stuff things up as I am not confident even with Rav's suggestion to fix it myself.

I literally have a week to sort this out before the 14/7/2024 ATO lodgment deadline.

Thank you.

Rav

Is there anything in particular that you're concerned about in regard to my recommendation outlined above? ie. do you feel that its incorrect?

We can certainly have a member of the technical support team look at your book instead and if you'd like to do so please give the team a buzz on 1300 756 663 when you've got a chance or shoot through a web ticket by clicking HERE 🙂

JANE_9714211

https://community.reckon.com/discussion/comment/20647240#Comment_20647240

Hi Rav,

The concern with your recommendation is the total amount of Salary SS amount in the "Post-tax deductions" column won't match the amount that should be in the RESC column. It was 3 pays in STP 2.

When I clicked on the web ticketing link, it took me to a page to fill in form but there isn't one.

I selected the Reckon One in the drop down list on that page to log in but it took me to our Reckon Customer page. Could you recheck that link please otherwise I will have to ring the 1300 number.

Thanks.

JANE_9714211

https://community.reckon.com/discussion/comment/20647240#Comment_20647240

Hi Rav,

I haven't had a chance to call Reckon Technical Support as I have been extremely busy with work. I need to log a web ticket this morning to get my issue sorted out as I won't be able to do it this afternoon.

The web link you sent me has no form to fill out. I just see the main page only.

Thank you.

Rav

The web ticket loads fine using the link I provided above (see example below). I'd suggest either refreshing the page and see if it loads for you after that, or open the link in an incognito window by right clicking the link and select open link in incognito window.

JANE_9714211

https://community.reckon.com/discussion/comment/20647313#Comment_20647313

Problem resolved from Reckon Technical Support.