Where do I enter the Protected Earnings amount for an Employee paying Child Support?
Donna_9743560
Member Posts: 5 Reckoner
Had a letter from CSA about a change in the protected earnings for an employee paying Child Support. Where do I make this change to the protected earnings amount in Reckon Accounts Hosted
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You dont. Its irrelevant to processing CSA deductions. Thanks for asking0
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Hi Donna
As the payroll person, it's very much applicable.
Unfortunately, there's not a specific section created in RA for tracking this if the pay varies but you do need to ensure that the employee's resulting net pay doesn't go below the PEA. If for instance, they work less hours & the standard CSA deduction will cause this to occur, you need to adjust the CSA deduction accordingly.The following rate applies from 1 January 2019:
Weekly rate $372.53
Fortnightly $745.06 (weekly rate x 2)
Four week period $1,490.12 (weekly rate x 4)
Monthly period $1,619.84 (daily rate x 30.4375)
More info is available here:
https://softwaredevelopers.ato.gov.au/DHSPEA
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Okay Shaz, how do you cater for this in Hosted? I think we were answering different parts of the same question.
Cheers
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Hi Kevin
Yeah, RA/RAH doesn't have this specific tracking feature. Elsewhere has been the suggestion to use 2 Payroll Items - 1 with the fixed minimum amount & the other being adjustable as required. However, that seems very messy & I don't see how it would work if using timesheets/hours!
As you know, RA/RAH has a default upper limit option, but this is for the amount of the deduction itself not the net amount remaining so that being the case, you'd need to just keep an eye on it each pay run & adjust the deduction manually if necessary.
I'm guessing it's likely only going to be encountered with those on a casual/variable employment basis as the CSA calculation is usually determined on the employee's regular wage.0 -
Well that was my first thought.0
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I have have the same issue, but with a garnishee order for the courts. Following for an outcome0
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