Working Holiday Maker Tax Settings 1 July 2017 forward

Tanya_8157482
Tanya_8157482 Member Posts: 2 Novice Member Novice Member
edited August 2020 in Reckon Accounts (Desktop)
Unless I have missed it in a communication somewhere, can someone confirm for me what is the correct setup for Working Holiday Maker employees 1 July going forward. Is it 8-NoTax Code, 15% Tax, and tick the Working Holiday Maker box so it appears on the employee's payment summary (and for 2016/17 payment summaries retrospectively)? I thought I heard at Conference or somewhere that the tax rate would be fixed in the June compliance patch. We wouldn't need to put the flat rate of 15% tax on - I thought there was an upper limit on the wages taxed at 15%rate, after that marginal rates apply. Can someone from Reckon please clarify what is the correct setup for these staff from July 1. (And I'm sorry if I have missed the communication). Thank you.

Comments

  • Ifti
    Ifti Reckon Staff Posts: 171 Reckon Staff Reckon Staff
    edited February 2019
    Hi Tanya,

    Thank you for your post. Jay Jay has already given you the information. I'm writing it anyway so that it can answer others if they have the same question.

    You will have to manually change the tax rate in RA, it doesn't change it automatically for you. However you will have to tick on the Employee's tax tab to let RA know that it's a Working Holiday maker record for it to report it correctly.
    • To setup backpackers tax manually in RAB, please follow this KB.
    • Read this Upgrade Guide to know how to use the latest compliance (WHM and FBT) updates in RA 2017 R2.
    You will have to use the R2 version to send PAYG Summaries and Empdupe file to have the required updated format.

    I hope the above helps with your query.

    Thanks

    Ifti
  • Tanya_8157482
    Tanya_8157482 Member Posts: 2 Novice Member Novice Member
    edited July 2017
    Thank you JayJay and Ifti for your clarification this morning.

This discussion has been closed.

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