Mismatching of Gross Wage

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HeatherG_10862539
HeatherG_10862539 Member Posts: 3 ✭
edited January 3 in Reckon Payroll 🚀

On the old payroll app, the gross wages included all payments including overtime. I could match my manual calculations with that of the payroll app. Since changing to new app, overtime is entered separately. Now the STP gross wage is less than my manual calculation. Guessing it may have something to do with settings but I don't know how to change it. I'm about to submit my BAS and I need to have matching information before I pay. Please advise how to correct this

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  • Joseph Li
    Joseph Li Member Posts: 499 ✭✭
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    Overtime payment is always included in gross wages for tax purposes. That means W1 in BAS includes overtime payments. However not all overtime payments attract SG.

  • HeatherG_10862539
    HeatherG_10862539 Member Posts: 3 ✭
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    Thankyou. I am aware about the SG but that is not my issue.

    l enter my BAS manually and the figure that comes up as the total gross wage on the pay roll app does not correlate with my manual calculations. As far as l know if l lodge the payroll app information as it currently is, it will not match my manual entry.

    I want to know if there is something in settings that needs to be changed so that it reflects the actual gross wage.

    l don’t want to have to muck around making adjustments later if there is a solution to this now

  • Joseph Li
    Joseph Li Member Posts: 499 ✭✭
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    @HeatherG I am interested to know how do you enter overtime separately in a pay run. Say ordinary earnings is $1200, overtime amount is $250. I have not used overtime before in the Payroll App.

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,388 Community Manager Community Manager
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    Hi @HeatherG

    l enter my BAS manually and the figure that comes up as the total gross wage on the pay roll app does not correlate with my manual calculations. As far as l know if l lodge the payroll app information as it currently is, it will not match my manual entry.

    I want to know if there is something in settings that needs to be changed so that it reflects the actual gross wage.

    What specifically is incorrect? As Joseph has mentioned above, how are you entering your pay runs?

    The Payroll App has ordinary pay items along with overtime items such as double time and time and a half that you can use within a pay run to differentiate those in a pay. You can also create your own custom pay items in the Settings menu of the Payroll App if you need to.

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  • HeatherG_10862539
    HeatherG_10862539 Member Posts: 3 ✭
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    I am using the new payroll app, basic plan.

    I have 2 employees, 1st works occasional overtime, 2nd has not done overtime. When I enter a pay run, I enter ordinary hour rate, the number of hours worked which self calculates the total gross wage, enter the amount of tax which self calculates the net wage. When I add the pay run figures to what's already been entered the employee pay summary gross figure and tax matches.

    Eg 1st pay Gross 365.80, Tax 82.00

    2nd pay " 161.20 " 34.00

    Totals 527.00 116.00. These last figures match with my manual calculations and what shows on the employees pay summary on the app.

    However, with the 1st employee, I do the same process, and also add in the hourly rate for overtime and the number of hours overtime worked. The app does everything else as above. The end result is my manual calculations over the 9 pays = $7835.78 inclusive of all overtime. The total gross on the app =$7398.30. I'm unsure as to why there should be a difference. Each pay run had the overtime entered. The total tax calculated manually matches the employee pay summary on app.

    Whenever I enter overtime into the app, the gross pay that appears on the pay runs doesn't include the overtime, and the total gross on the employee summary is reflective of not including the overtime payments. These overtime payments are subject to tax and should be included in the gross wage.

    As a result of trying to correct this, I have entered two pay runs unneccessarily. On the previous app I could enter a pay run with a negative wage figure to correct an error. This doesnt seem to be possible now. I wish to correct these extra pay runs before I send in my BAS.

    I am so frustrated with this as nothing seems to work. Can you please advise how to delete the pay run as well as fix the gross wage problem.

  • Joseph Li
    Joseph Li Member Posts: 499 ✭✭
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    @HeatherG You should be able to edit a previously submitted pay run to add an overtime item. I think you can also edit pay run to reduce its figures to nil.

    I did a test earlier. Create draft pay run - add ordinary earnings item, add double time overtime item; gross wage includes both amounts. Although I noticed ordinary earnings item overwrites overtime item. So I guess overtime item is to be added after ordinary earnings item.

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