Vic payroll tax threshold in 2024 Reckon Accounts

Wini1010
Wini1010 Member Posts: 18 Reckoner Reckoner
in Reckon Accounts (Desktop)

Is there somewhere in Reckon Accounts 2024 to update the 2024/25 threshold for Victorian payroll tax? The State Payroll Tax reports appear to be basing 2024/25 payroll tax liability calculations on the 2023/24 annual threshold of $700000 ($58333 monthly) instead of the 2024/25 annual threshold of $900000 ($75000 monthly).

Best Answer

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,418 Reckon Community Manager Community Manager
    Answer ✓

    Hi @Wini1010

    The new state payroll tax rate was announced after the Reckon Accounts 2024 release however the team have just published a new article in relation to 2024/25 VIC State Payroll Tax which I'll link below 👇

    https://help.reckon.com/article/0b6ywicz45

    For our Reckon Accounts Desktop users, there is a XML file download that you can drop in and we've got step by step instructions on what to do in the above guide.

Answers

  • Alexis McKeown
    Alexis McKeown Reckon Staff Posts: 388 Reckon Staff

    Dear @Wini1010 ,

    Did you accept the prompt to upgrade to the latest tax and super tables?

    Are you sure all items your employee has are valid for State Payroll Tax and the employee themselves is marked under the correct state in their Tax Details?

    Kind regards,

    Alexander McKeown
    Reckon Senior Technical Support

  • Wini1010
    Wini1010 Member Posts: 18 Reckoner Reckoner

    Hi Alexander,

    Thanks for your reply.

    Yes I did upgrade to the latest tax and super tables - tax table version 2425331 effective 01/07/24. All other and super is calculating as expected for 2024/25.

    All employees are marked under the correct state in their tax details. There are no issues with the total included (taxable) amounts on the Reckon payroll tax reports. The incorrect amount on the reports is the threshold for Victoria. It is calculating on a maximum threshold of $58333 (2023/24 threshold) for the month instead of $75000 (2024/25 threshold) in a report for July 2024 payroll.

    Is there a fix for this other than manually recalculating with the correct threshold?

  • Alexis McKeown
    Alexis McKeown Reckon Staff Posts: 388 Reckon Staff

    Dear @Wini1010 ,

    Not to my knowledge - it falls more within the realm of accounting knowledge.

    As such, you may want to reach out to a Reckon Professional Partner or contact your accountant/bookkeeper.

    Otherwise, I would suggest running a rebuild on the company file to ensure this is not some form of minor corruption:

    1. Go to File.
    2. Select Utilities.
    3. Select Rebuild Data.

    Once the rebuild completes, check the totals again. If it's still incorrect, it's likely something more to do with the pay items or accounting info.

    Apologies I could not be of more assistance.

    Kind regards,

    Alexander McKeown

    Reckon Senior Technical Support

  • Wini1010
    Wini1010 Member Posts: 18 Reckoner Reckoner

    Hi Alexander,

    Rebuild doesn't help. This is a Reckon issue in my opinion as the payroll tax threshold is not something impacted by pay items or accounting info, it is in Reckon. Are you able to confirm if Reckon contains the updated 2023-24 payroll tax threshold of $900,000 (per annum) for Victoria? If not, is there a phone number I can call to confirm?

  • Wini1010
    Wini1010 Member Posts: 18 Reckoner Reckoner

    Update - sorry I meant 2024-25 payroll tax threshold in the message above.

  • loypur
    loypur Member Posts: 13 Reckoner Reckoner

    The changes to Payroll Tax were know from 23rd of May and Reckon couldn't implement it, seriously .

    When are you going to fix it?

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,418 Reckon Community Manager Community Manager

    Hi @loypur

    I'm not an authority on this, however from what I understand the changes to the Victoria State Payroll Tax were passed and published on June 27 which was well after the release of Reckon Accounts 2024.

    These changes will be incorporated into the next release of Reckon Accounts. In the interim, there is an XML file you can download and drop in to Reckon Accounts 2024 Desktop. There is more info on this and a link to the step by step guide in my reply earlier up in this thread.

    Cheers

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