How to pay a charity using pre-tax pay with Reckon One?

Jeannie
Jeannie Member Posts: 1 Novice Member Novice Member
edited October 2024 in Reckon Accounts (Desktop)
one of my employee want me to pay the current pay period's pay into a charity. I need to pay it pre-tax but I don't know how to do using Reckon One, Any one can help? Thanks

Comments

  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited August 2019
    You can't just pay it pre tax. It doesn't work that way. There are specific rules around salary sacrifice. NFPs have different rules to public benevolent institutions. You probably need to consult a tax specialist
  • Charley
    Charley Member Posts: 498 Reckon Star Reckon Star
    edited January 2020

    Agree with Kevin; effectively he's making a donation to a Charity; I'd just enter it as a normal pay, where it goes doesn't matter but if you want to separate it then it must be seen as a deduction not salary sacrifice. I wouldn't necessarily bother, it's effectively like his wage is going into 2 separate bank accounts. As a donation to a charity he might be able to claim it back on his tax providing the charity is a Deductible Gift Recipient (DGR) and provides a receipt.
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,101 Accredited Partner Accredited Partner
    edited June 2020
    Jeannie - have a read of this link to the ATO and see what situation might best apply to this instance?  https://www.ato.gov.au/non-profit/gifts-and-fundraising/workplace-and-business-support/workplace-giv...

  • Charley
    Charley Member Posts: 498 Reckon Star Reckon Star
    edited January 2020

    I was just thinking something along similar lines; whose tax issue would it be. But it clears it up; it can be done Salary sacrifice but it is then the employer that claims the Tax deduction for a DGR gift providing of course that he's a for profit entity. If the employer is an NFP then there is no point.
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