PAYG on Reckon Hosted differs from ATO
We have a new employee
$138,000 per year
$5307.69 per fortnight
Reckon calculates PAYG as $1496.00
ATO shows as $1358 - not including any medicare levy.
employee card shows 2-tft - no other items ticked.
I have checked the super on payroll item list - tax tracking - none
Taxes tab - default
I have checked employees - tax table information - I have version 2021292 - calculations are updated for 1/7/2020.
Any help appreciated.
Comments
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1496.00 is correct; go with that and if the ATO thinks it's less the he'll get a refund at EOFY
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Using the tax calculator app I got a result of 1498, by saying employee is claiming the Medicare levy reduction
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“… ATO shows as $1358 - not including any medicare levy …”
This sounds like you’re using the ATO’s “Tax Withheld Calculator” & have specifically selected NOT to include the Medicare Levy (as mentioned above by Kris).
Reckon’s calculation is correct - as per the ATO’s fortnightly tax table here: https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/fortnightly-tax-table-from-13-October-2020.pdf - as default PAYG calculations should include the Medicare Levy!
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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Shaz,
Thanks for explaining and giving me the link to the fortnightly tax table from 13 October 2020.
Unfortunately I googled ATO resident taxes 2021 and this is what I got:
''Resident tax rates 2020–21
Taxable income
Tax on this income
0 – $18,200
Nil
$18,201 – $45,000
19 cents for each $1 over $18,200
$45,001 – $120,000
$5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000
$29,467 plus 37 cents for each $1 over $120,000
$180,001 and over
$51,667 plus 45 cents for each $1 over $180,000''
I now know I was using the wrong information thankyou.
Gayle
1
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