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PAYG W/H tax status changed

Coorarabox1

Hi Rav

I've had a call from a terminated employee's accountant stating that her client's status is Australian Resident for tax purposes. I had entered into Payroll and deducted tax as a working holiday maker. This was in the 2023-2024 finalised tax year which I have already submitted.

How can I change her status now and advise ATO as the accountant cannot finalise her tax.

Thanks Rav - hope you can help.

Judi

Accepted answers

Coorarabox1

Thankyou Alexander

I've been in touch with our accountant and hopefully will get this sorted out in the next few days. I can't believe how I messed up on this one … have never done it before.

Have a nice weekend. Cheers Judi

All comments

Alexis McKeown

Dear @Coorarabox1 ,

You can change her residency status by editing her employee record:

Go to Employees.
In the top-right-hand corner, select "Edit Details".
In her Employee Details, change the employee from "Working Holiday Maker" to "Australian Resident".
Click "Save & Close".

After this, you will need to update all previous payruns in the previous Financial Year:

Go to a payrun in 23-24.
Open the payrun.
Revert the payrun to draft.
Click the pencil icon to the right of the employee's name in the payrun.
Modify their ordinary hours up by a single digit (eg. 38 hours worked to 39).
Press Done.
Modify this figure back down (eg. 39 down to 38 hours worked).
Press Done.
Mark the payrun as paid.

This will update previous payruns to have the correct taxable figure for the employee.

Kind regards,

Alexander McKeown

Reckon Senior Technical Support

Coorarabox1

Thanks Alexander but I omitted to tell you that she was casual and worked irregular hours and as she was working under the Horticultural Award the payg w/h rate is 13%. I actually did take out the 13% tax for her first 2 weekly pays until I thought with her visa status she was a working holiday maker. I really messed up here. Help!! Sorry. Judi

Alexis McKeown

Dear @Coorarabox1 ,

This is a bit of a sticky situation… I can only advise on the technical side of Reckon, so please take my information as purely "per product recommendation".

You should, before anything else, consult with your accountant or bookkeeper around the best way of fixing this.

For my recommendation, you can change the Tax scale to Horticultural or Shearing worker.

This should set the tax scale up to 13%, even if they are set as an Australian resident, then repeating the steps listed above.

If this does not work, or you experience errors, I would suggest manually modifying the tax rates. This is not something I would recommend without first consulting your accountant or bookkeeper.

Kind regards,

Alexander McKeown

Reckon Senior Technical Support

Coorarabox1

Thankyou Alexander

I've been in touch with our accountant and hopefully will get this sorted out in the next few days. I can't believe how I messed up on this one … have never done it before.

Have a nice weekend. Cheers Judi

Coorarabox1

Thank you Alexander - yes, all sorted this morning with our Accountant's help and yours.

I appreciated your quick replies to my queries.

Kind regards

Judi