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Incorrect Tax Withheld

Gayle_10863666

Hello, I have a pay with incorrect tax withheld, it would seem it is caused by negative hours. I had a situation where an employee entered Saturday hours incorrectly on a Timesheet instead of Friday hours. Saturday hours are paid at double time. This wasn't realised until after the payment was paid.

The following pay period the 7.78 double time hours were input as negative and 7.78 hours entered with the other normal ordinary hours for this pay period. There was also a meal allowance entered as negative related to the Saturday double time overtime incorrect hours.

The gross on the pay slip is correct but the Tax Withheld has calculated as $1664.00 instead of $860.00.

The Super has also calculated the 12% incorrectly - $614.41 instead of $458.43. It has calculated Super on the credit amounts.

I have used the ATO Tax calculator to check the tax amount, screen shot below. Also below is a screen shot of the pay slip.

Could you please advise how to process credit hours if what I have done is incorrect.

Thank you - Regards Gayle

Accepted answers

Rav

Hi @Gayle_10863666

Can you please review the pay run again when you have a chance. It should now show the results you're expecting.

To add some context, when you add start and end dates to earning items for a casual employee in a pay run, Reckon One will use the daily tax tables instead.

The team have removed the start and end dates which should bring this in-line with what you're expecting the calculation to be.

Let me know when you can.

Cheers

All comments

Rav

Hi @Gayle_10863666

Can you let me know the tax setup of this employee and I'll see if I can replicate this in my book.

Mainly the tax details on the Tax tab of their employee profile (block out the TFN) and also their pay frequency.

Gayle_10863666

Hello Rav

I think you should still have access to our Book - the employee's first name is Richard

Thank you, Regards - Gayle

Rav

Hi @Gayle_10863666

Just a quick update and question for you.

To be honest, this isn't an area of expertise for me personally so I've asked our payroll team for their help in looking into this.

My colleague @Alexis McKeown is looking into this for us but wanted to check in with you first on whether she's able to modify the pay run for testing purposes to investigate? No data will be sent to the ATO, its more just for testing purposes to understand the cause of the issue.

We'll wait to hear from you before going any further.

Cheers

Gayle_10863666

Hello Rav

Is there any way to duplicate the pay run where this happened rather than using the actual processed pay run? Would then be able to delete the duplicate after investigation.

It was Fortnight Ending 20.09.26. Let me know if not possible.

thank you - Regards Gayle

Rav

Totally understandable Gayle, the only reason the team wanted to look at that specific pay run is because in their preliminary investigation they've already attempted recreating the pay run in their own books on our end with the same setup and do not get the same results.

Gayle_10863666

OK thanks Rav, yes go ahead, we need to find out why it has happened.

Thank you - Gayle

Rav

Thanks for that @Gayle_10863666

Will get the team on this and will come back to you shortly.

Rav

Hi @Gayle_10863666

Can you please review the pay run again when you have a chance. It should now show the results you're expecting.

To add some context, when you add start and end dates to earning items for a casual employee in a pay run, Reckon One will use the daily tax tables instead.

The team have removed the start and end dates which should bring this in-line with what you're expecting the calculation to be.

Let me know when you can.

Cheers

Gayle_10863666

Hello Rav, yes the PAYG is correct now, could you tell me if the only change made to Richard's pay was the removal of the dates, please?

The note below says it MAY BE CALCULATED using tax table for daily casual workers, I assumed you would get an option to say yes or no to this, on this occasion I entered the date as our reference for the credit hours.

Is it possible to have an option yes or no if you do or don't want the tax to amend for a casual worker? or do we just not use the date facility as a reference and only use it for a permanent worker for leave, etc. reference dates.

Thank you - Regards Gayle

Rav

Hi @Gayle_10863666

That's correct, the only change was the removal of the start and end date on the pay items for Richard.

At this stage, entering dates to pay items for a casual employee will trigger the daily tax table for PAYG calculations. Unfortunately, there isn't an option at this stage to include dates for casual employees however there is an open feature request which I'll link HERE and if its something that you'd like to see then I'd strongly recommend adding your vote (click the vote button in the opening post) and leave a comment as well.

Gayle_10863666

Hello Rav, just another thing, Super (12%) has calculated at $614.41 on a gross of $3820.25.

Super 12% should be $458.43 - it seems to be calculating Super on the CREDIT hours amount of $1279.81.

I think this is a separate issue to the daily/casual tax rate, which is now fixed when the dates were removed.

Thank you - Regards Gayle

Rav

Hi @Gayle_10863666

I've had a look at the pay items you've used for Richard in this pay run and aside from the Normal Ordinary Hours earnings item, you have also set super to calculate on the following allowance items;

Travel Allowance ONSHORE - OLD
Electrician Licence Allowance
Dual Trade Allowance $7.57

When I look at the earnings and allowance that are currently added to Richard which generate super, this is what I see and how Reckon One is currently calculating the amount of Super Guarantee that you're seeing 👇

Pay Items
Normal Ordinary	4479.34
Dual Trade Allowance $7.57	353.37
Electrician Licence Allowance	65.35
Travel Allowance ONSHORE - OLD	222.0
Total	5120.06
Super at 12%		614.41

Based on the settings of the pay items to calculate super, the current super amount that is displaying in the pay run is correct.

Gayle_10863666

Hello Rav, Yes, you are correct, sorry, I forgot overtime does not attract Super, thank goodness it's Friday !!!!

Thank you - Gayle