Why does an employee appear as "not tax ready" when others show "tax ready"?
We have an employee who is trying to complete her tax return and it shows "not tax ready" but her husband who works for our same company shows "tax ready". I asked the question in the chat on Reckon Payroll and it mentioned it may because she hasn't earned enough to have any tax taken out and that I should open a pay and "unlock net pay" and add an additional payroll item for $0.01and modify PAYG tax from $0.00 to $0.01. Is this true or can she complete her tax manually without being "tax ready"? If I do need to make changes, where do I find "unlock net pay"?
Answers
-
Has this employee been paid using a tax-applicable ordinary time earnings item such as the default ordinary earnings item? Or have you used a custom earnings item?
Following on from that, have you made changes to their tax calculations in the pay run? ie. have you overridden the tax amount that is automatically calculated and instead added in a custom tax amount for the employee in their pay run?
0 -
Hi Rav. She is casual and paid using the default ordinary earnings item. I haven't amended her tax calcuations at all. The only thing is that she's been married this financial year and her name has been changed…. could that affect it?
0 -
Thanks @Jodie_10004988
I think this might be more of a question for the ATO as I don't want to give you the wrong info on what's happening at their end.
With that said, and this is just my opinion from some limited searching, but yes I think this could potentially have an impact if the employee has not updated their name on the ATO end by following the steps outlined on their website HERE.
0 -
Ok. I will ask her to get in contact with the ATO.
1
